  ### Calculate Price

Get a 10 % discount on an order above \$ 100
Use the following coupon code :
Whizz15

# Value of Operations

```Value of Operations
Netflix, Inc.
(In Millions)
Value of operations		Actual	Projected
2013
Long-term growth rate
Weighted Avg. Cost of Cap. (WACC)
Free Cash Flow
( CFn x (1+ g) ) / (r - g)
Horizon Value			#DIV/0!
PV of the horizon value and of the free cash flows.
PV of Horizon Value @ WACC		#DIV/0!
PV of free cash flows @ WACC		 \$-
Value of Operations		#DIV/0!
Weighted Average Cost of Capital
Netflix, Inc.
Formula
WACC =	Weighted average cost of capital
rD (1- Tc )*( D / V )+ rE *( E / V )
Where:
rD 	=	 The required return of the firm's Debt financing
(1-Tc) 	=	 The Tax adjustment for interest expense
(D/V) 	=	 (Debt/Total Value)
rE	=	 the firm's cost of equity
(E/V) 	=	 (Equity/Total Value)
WACC Calculation
rD 	=
(1-Tc) 	=
(D/V) 	=	#DIV/0!
rE	=	0.00%
(E/V) 	=	#DIV/0!
Total Debt D	=
Total Equity E	=
Total Firm Value	=
rE = rf+B(rM-Rf)	=
Risk Free rate rf	=
Historical Mkt return rm	=
Beta	=		Average Beta of 2.03 and 0 as quoted below.
WACC	=	#DIV/0!```
Get a 10 % discount on an order above \$ 100
Use the following coupon code :
Whizz15

Category: Sample Questions