1)Use the information from your Cash flow statement to perform a Discounted Cash Flow valuation of your organisation Attempt to value the shares of your company at the beginning of the 3-year period. .Assume the company has a cost of capital of 5 %. ( show these calculations in Excel

2) perform a residual earnings valuation to determine the value of the shares.

RATIO ANALYSIS - Mercury Energy Description 2017 2016 2015 2014 Amount Percentage Amount Percentage Amount Percentage Amount Income statement $m $m $m $m $m $m $m Revenue 1597 1564 1678 1705 Expenses 1074 1071 1196 1201 Interest expense 95 97 99 84 Tax expense 74 58 47 83 Net Income 523 493 482 504 Balance sheet Cash 30 46 32 19 Accounts receivable 240 198 189 218 Inventory 39 45 30 24 Other Current assets 18 24 35 31 Non-current Assets 5670 5772 5744 5397 Other assets 0 0 28 0 Total assets 5997 6085 6058 5689 Payables and Accruals 202 156 159 169 Other Current Liabilities 156 154 39 102 Non current liabilities 2331 2460 2518 2199 Total liabilities 2689 2770 2721 2470 Total shareholder's equity 3308 3315 3337 3219 Cash flow Cash flow from operations 372 280 309 317 Dividends paid 253 228 260 173 Interest paid 95 98 101 90RATIO ANALYSIS - Mercury Energy Profitability Ratios Return on Assets Return on Equity Dividend Payout Ratio Solvency Ratios Debt to Equity Liquidity Ratios Current Ratio Net Working capital Activity Ratios Asset turnover Receivable turnover (5th Ratios Sales growth Asset growth 2017 3.72% 15.31% 43.37% 0.313 0.913 77 0.255 5.554 2.11% -1.45% 2016 3. 10% 14.37% 45.25% 0.335 1.010 37 0.257 7.399 5.79% 0.45% 2015 7.95% 14.44% 53.94% 0.315 1.444 50 0.277 3.373 - 1.53% 5.49%