FIN 5425 FInal

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Last updated 12:32 AM on 8/3/26
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8 Terms

1
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In  2026 valuation of Flowers Foods, what percent of operating asset value is contributed by the present value of cash flows after year 10?

56%

64%

36%

64%

2
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If in 2026 Flowers Foods valuation, the target operating margin was  increased from 8% to 9%, what would be the new equity value per share?

 

13.06

14.79

15.89

15.89

3
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Imagine that in 2026 Flowers Foods valuation the cost of capital was underestimated. If the cost of capital was increased to 8%, what would be the new equity value per share?

7.23

8.43

13.06

7.23

4
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In the 2026 Flowers Foods valuation, if we wanted to keep the terminal year reinvestment rate at its current level but increase growth to 2%, what ROIC (ROC) do we need to make it happen?

8.10%

16.20%

12.34%

12.34%

5
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In 2026 Flowers Foods valuation, what is the reinvestment rate in year 10?

8.12%

16.20%

10.75%

10.75%

6
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In 2026 Flowers Foods valuation, how does the reinvestment rate in year 10 compare to the reinvestment rate in the terminal year?

Year 10 has a higher reinvestment rate.

Both rates are the same.

Year 10 has a lower reinvestment rate.

Year 10 has a lower reinvestment rate.

7
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In 2026 Flowers Foods Valuation, if the long-term growth rate were to increase from 1% to 2% (Input Sheet, row 68), what would be the new equity value per share?

13.28

14.18

8.76

13.06

13.28

8
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In 2026 Flowers Foods valuation, assume that the firm is able to maintain a competitive advantage in earn ROIC=8% above WACC after year 10 (Input Sheet rows 48 and 49). What is the new firm value?

13.06

8.76

16.89

13.70

13.70