# Brandtly Industries invests a large sum of money in R&D; as a result, it retains and...

###### Question:

Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $4 million,$5 million, $8 million, and$14 million. After the fourth year, free cash flow is projected to grow at a constant 5%. Brandtly's WACC is 9%, the market value of its debt and preferred stock totals $62 million; and it has 24 million shares of common stock outstanding. Write out your answers completely. For example, 13 million should be entered as 13,000,000. What is the present value of the free cash flows projected during the next 4 years? Round your answer to the nearest cent. Do not round your intermediate calculations.$

What is the firm's horizon, or continuing, value? Round your answer to the nearest cent. $What is the firm's total value today? Round your answer to the nearest cent. Do not round your intermediate calculations.$

##### Background pertinent to this problem is available in Interactive LearningWare 18.3. A uniform electric field exists...
Background pertinent to this problem is available in Interactive LearningWare 18.3. A uniform electric field exists everywhere in the x, y plane. This electric field has a magnitude of 5600 N/C and is directed in the positive x direction. A point charge -8.9 × 10-9 C is placed at the origin. F...