Suppose BSA Corporation projected to generate the following for the next five years, in million pesos: Operating Expense (excluding depreciation) Year Revenue Тахes 1 50.00 30.00 6.00 2 55.00 33.00...


Suppose BSA Corporation projected to generate the following for the next five years, in million pesos:<br>Operating<br>Expense<br>(excluding<br>depreciation)<br>Year<br>Revenue<br>Тахes<br>1<br>50.00<br>30.00<br>6.00<br>2<br>55.00<br>33.00<br>6.60<br>3<br>60.00<br>36.30<br>7.26<br>4<br>66.55<br>39.93<br>7.99<br>5<br>73.21<br>43.92<br>8.78<br>A property was purchased for Php150 Million. The terminal value was assumed based on the growth rate of the cash flows.<br>The outstanding loan is Php16.62 Million. The required rate of return for this business is 12%. Given the information above,<br>answer the following:<br>1. How much is the Terminal Value?<br>2. How much is the Discounted Net Cash Flows to the Firm?<br>3. How much is the Net Cash Flow to the Equity?<br>4. Assuming there are no outstanding loans, how much is the Discounted Net Cash Flows to the Equity?<br>5. Assuming that the required rate of retum is 10%, how much is the Discounted Net Cash Flows to the Equity?<br>

Extracted text: Suppose BSA Corporation projected to generate the following for the next five years, in million pesos: Operating Expense (excluding depreciation) Year Revenue Тахes 1 50.00 30.00 6.00 2 55.00 33.00 6.60 3 60.00 36.30 7.26 4 66.55 39.93 7.99 5 73.21 43.92 8.78 A property was purchased for Php150 Million. The terminal value was assumed based on the growth rate of the cash flows. The outstanding loan is Php16.62 Million. The required rate of return for this business is 12%. Given the information above, answer the following: 1. How much is the Terminal Value? 2. How much is the Discounted Net Cash Flows to the Firm? 3. How much is the Net Cash Flow to the Equity? 4. Assuming there are no outstanding loans, how much is the Discounted Net Cash Flows to the Equity? 5. Assuming that the required rate of retum is 10%, how much is the Discounted Net Cash Flows to the Equity?

Jun 11, 2022
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