Mari

I'm completely new to cooking. I bought Perdue boneless, skinless chicken breasts and i'm not entirely sure how to clean it. My mom soaks the chicken in lime, but my friend soaks his chicken in vinegar and flour...how do YOU properly clean chicken???

Meds International (MI) is evaluating the purchase of Focused Pharmaceuticals (FP), a firm that is developing targeted treatments for various forms of cancer. As an analyst at MI you have been charged with using a discounted cash flow analysis to figure out what FP is worth to MI. Last year FP had revenues of $100 million, operating costs (including R&D) were 75 % of revenues, and depreciation expenses were $9 million. The firm has a beta of 1.25, the risk-free rate of return is 4%, and the market risk-premium is 5.5%. FP uses very little debt financing, and debt constitutes 15% of total financing. The yield to maturity on the firm's debt is 6%, and the tax rate is 34%.

If purchased by MI, revenues are expected to grow at a rate of 20% per year for the next 5 years. Operating costs should be 70% of revenues for the next 3 years, and 65% of revenues beyond that. Capital expenditures are expected to remain steady at $15 million per year over the next 5 years, and result in annual increases in depreciation of $3 million. FP's net working capital is currently $10 million, and the firm maintains a ratio of net working capital to revenues of 0.10.

If cash flows from operations are expected to increase at a rate of 4% per annum after the next 5 years, what is the maximum amount that MI should be willing to pay for FP?

Meds International (MI) is evaluating the purchase of Focused Pharmaceuticals (FP), a firm that is developing targeted treatments for various forms of cancer. As an analyst at MI you have been charged with using a discounted cash flow analysis to figure out what FP is worth to MI. Last year FP had revenues of $100 million, operating costs (including R&D) were 75 % of revenues, and depreciation expenses were $9 million. The firm has a beta of 1.25, the risk-free rate of return is 4%, and the market risk-premium is 5.5%. FP uses very little debt financing, and debt constitutes 15% of total financing. The yield to maturity on the firm's debt is 6%, and the tax rate is 34%.

If purchased by MI, revenues are expected to grow at a rate of 20% per year for the next 5 years. Operating costs should be 70% of revenues for the next 3 years, and 65% of revenues beyond that. Capital expenditures are expected to remain steady at $15 million per year over the next 5 years, and result in annual increases in depreciation of $3 million. FP's net working capital is currently $10 million, and the firm maintains a ratio of net working capital to revenues of 0.10.

If cash flows from operations are expected to increase at a rate of 4% per annum after the next 5 years, what is the maximum amount that MI should be willing to pay for FP?