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

question 47

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 intrinsic value of the stock now (Year 2010) .

• A) $155.55
• B) $173.27
• C) $196.44
• D) $207.79
• E) $108.30

Recognize the differences between voluntary and involuntary property transfers, including assignments, subleases, and easements.

Understand legal strategies for dispute resolution and management in property law, including partitioning and rights of survivorship.

Understand the distinction between problem-focused and emotion-focused coping strategies.

Recognize the physical and psychological benefits of employing active coping strategies.

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Definitions:

Consolidated Statement

Financial statements that aggregate the financial position and operations of a parent company and its subsidiaries, presenting them as a single economic entity.

Cash Flows

The aggregate monetary transactions entering and leaving a corporation, chiefly influencing its cash flow.

Consolidated Cost Of Goods Sold

The total cost of goods sold by a combined entity, including all subsidiaries, after eliminating intercompany transactions.

Noncontrolling Interest

A stake in a corporation where the shareholder owns less than a majority of the company's shares, without significant control over its strategic decisions.