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Exhibit 14 From Year 2019 Onward Growth in OFCF Is Expected to

question 128

Multiple Choice

Exhibit 14.8
Use the Information Below for the Following Problem(S)
At the end of the year 2010 the CKL Corporation had operating free cash flow (OFCF) of $300,000 and shares outstanding of 100,000. Total debt is currently $10,000,000. The company projects the following annual growth rates in OFCF
$\begin{array} { c c } \text { Year } & \text { Grapth Rata } \\\hline 2011 & 25 \% \\2012 & 20 \% \\2013 & 15 \% \\2014 & 10 \% \\2015 & 12 \% \\2016 & 14 \% \\2017 & 16 \% \\2018 & 18 \%\end{array}$
From year 2019 onward growth in OFCF is expected to remain constant at 5% per year. The stock has a beta of 1.1 and the current market price is $80. Currently the yield on 10-year Treasury notes is 5% and the equity risk premium is 4%. The firm can raise debt at a pre-tax cost of 9%. The tax rate is 25%. The proportion of equity is 55% and the proportion of debt is 45%.
-Refer to Exhibit 14.8.Calculate the present value now (Year 2010) of OFCF during the period of declining growth (that is for years 2011 to 2014) .

Identify Moyers' ten basic responsibilities of nonprofit chief executives.

Understand the importance of leadership personality in matching organizational missions.

Comprehend the responsibilities of a nonprofit chief executive officer, including board member selection.

Understand and apply contingency leadership in practice.

Definitions:

Modern Techniques

Contemporary methods used in various fields to improve efficiency, accuracy, and productivity.

Capital Budgeting

The process undertaken by companies to evaluate and prioritize investments in long-term assets based on their potential returns.

Individual Cash Flows

The specific instances of cash being received or expended by an entity, which can include income from sales, financing, investments, or operational activities.

Subjectively

Based on personal feelings, tastes, or opinions rather than external facts or evidence.