(14 pts) . 3. Find the equity value for a company with the following information free cash flow in 2022 is expected to be $19.000 Free cash flow in 2023 is expected to be $19,500 Free cash flow in 2024 is expected to be $20,800 You are not given growth rates beyond 2024, so you plug in 1.8% which is What GDP tends to grow at The company's WACC is 75%, and they have 5125,000 of debt Other companies are selling at P/E multiples of 18 and EV/EBITDA multiples of 11x a) What is the equity value using the free cash flow valuation method? b) What are two equity valuations using other methods? c Which is the best method to use for valuation this case? Why? (8 pts) (4 pts) 12 pts) 4. The average score on the first Finance exam is 82%. The standard deviation is 7%. 20 students took the exam. The average score on the second exam was 81%, with a standard deviation of 9%, but only 16 students took this exam (8 pts) a. For the first exam: What percentage of the students would you expect to have scored above 96%? b. For the second exam: What percentage of the students would you expect to have scored below 72%? c. What is the welghted average score across both exams? 3 - Cash - Inventory Receivables - Payables 1 MC Yeart ANC-NC- -Es-Depreca- Change in Net Working Capital ras-Derin (14 pts) . 3. Find the equity value for a company with the following information free cash flow in 2022 is expected to be $19.000 Free cash flow in 2023 is expected to be $19,500 Free cash flow in 2024 is expected to be $20,800 You are not given growth rates beyond 2024, so you plug in 1.8% which is What GDP tends to grow at The company's WACC is 75%, and they have 5125,000 of debt Other companies are selling at P/E multiples of 18 and EV/EBITDA multiples of 11x a) What is the equity value using the free cash flow valuation method? b) What are two equity valuations using other methods? c Which is the best method to use for valuation this case? Why? (8 pts) (4 pts) 12 pts) 4. The average score on the first Finance exam is 82%. The standard deviation is 7%. 20 students took the exam. The average score on the second exam was 81%, with a standard deviation of 9%, but only 16 students took this exam (8 pts) a. For the first exam: What percentage of the students would you expect to have scored above 96%? b. For the second exam: What percentage of the students would you expect to have scored below 72%? c. What is the welghted average score across both exams? 3 - Cash - Inventory Receivables - Payables 1 MC Yeart ANC-NC- -Es-Depreca- Change in Net Working Capital ras-Derin
