4. The Market Value of Unlisted Stocks

Above you find a balance sheet and income statement of a corporation. The dividend paid in the year 2020 is ………

See the company described at question 1. The cash flow from investing activities is ……….

See the company described at question 1. The free cash flow for the year 2020 is ……….

See the company described at question 1. The financing cash flow for the year 2020 is ……….

Assume that on the first of January the following information is available for company Steady. The EBIT is EUR 800,000 per year until the infinite and the total level of CAPEX equals the depreciation. The WACC is 8%. If the tax rate is 20%, the market value of Steady on January 1 based on the expected free cash flow is …...

See the situation described at question 5. What percentage of the total market value of the business activities stems from the free cash flows of the first 25 years?

What is the after-tax WACC for a listed corporation given the following information. The corporation has issued a perpetual bond 10 years ago with a principal amount of EUR 200 million. The company pays a fixed interest amount to the bond holders at the end of each year for EUR 16 million. The market interest rate of this loan is 4% per year. Looking at the equity, what we see is that the price of the stock is EUR 40 and the cost of equity is 9.4%. Total number of shares outstanding is 20 million. Assume that the current capital structure is optimal and the tax rate is 20%.