Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 pts D Question 1 Use the information on the WACC worksheet in valuation assignment.xlsx file on canvas to compute JAN Corp.'s share price using

image text in transcribed
image text in transcribed
1 pts D Question 1 Use the information on the WACC worksheet in valuation assignment.xlsx file on canvas to compute JAN Corp.'s share price using the WACC method. Round your final answer to two decimals. A39 X fx PLUS: Terminal value H B D 1 WACC Method 3 Gray cells are given by assumption 4 Green you need to figure out 5 6 JAN Corps. Key statistics 7 FCF Growth rate after year 3 3 BD/E 0.30 9 ro 0.06 10 215 11 12 Book value of Debt 95.00 13 Cash holdings 25.00 14 Shares outstanding 6300 15 16 Interest rates 17 3 18 El 10% 19 20 Esitmate JAN Corp's pa from comparable companies 21 Comparable firms BE DE 22 Harris Enterprises 1.22 1.00 23 Tindall Ventures 112 0.70 24 Orr Limited 129 0.30 25 Average 26 27 Compute JAN Corp's WACC 28 29 D/DE) 30 WACC 31 32 Discount JAN Corp's FCF to get the value of the levered assets 33 Years from now 34 Timeline 1 35 Free cash flow 200.00 $ 161 00 36 PV FCF) or DCF 37 38 Sumco 39 PLUS: Terminal value 40 V BA Use the capital asset pricing model 3 $ 129.00 + CPV of Fof beyond year) 42 Compute AN Corp's share price 49 44 V 45 PLUS: Cash holdings 46 LESS Debt 47. Equity 48 19 Share price WACC APV CCF + Ready

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statements A Step By Step Guide To Understanding And Creating Financial Reports

Authors: Thomas Ittelson

1st Edition

1632652072, 978-1632652072

More Books

Students also viewed these Finance questions