Use next year's Cash Flow Forecast for Blank Company to answer the question(s) below.

-Suppose Blank Company has only one project, as forecast above, and an unlevered cost of equity of 8%. What is the value of the company if the demand is as expected?
A) $23,148.15
B) $32,407.40
C) $41,666.67
D) Cannot be determined with the information given.

Question

Use next year's Cash Flow Forecast for Blank Company to answer the question(s) below.
 
-Suppose Blank Company has only one project, as forecast above, and an unlevered cost of equity of 8%. What is the value of the company if the demand is as expected?
A) $23,148.15 
B) $32,407.40 
C) $41,666.67 
D) Cannot be determined with the information given.

Quizplus · Accepted Answer

B) Expected cash flow is $35,000. Discounted for one period, 11ea84dc_f50c_f559_9a63_7319892f9961_TB1316_00_TB1316_00 .

Use Next Year's Cash Flow Forecast for Blank Company to Answer