1)What valuations of the shares are suggested by an analysis of the financial statements

using a discounted cash flow analysis (you will need to calculate the weighted average

cost of capital), the dividend discount model, and a relative valuation?

(i)Derive the pro-forma income statement,pro-forma balance sheet, and cash flow

sheet.

[ 35 marks ]

(ii)Compute the weighted average cost of capital (WACC) forNeptune Orient Lines

(NOL).

[ 10 marks ]

(iii)From the pro-forma income statement and pro-forma balance sheetand cash flow

calculations, perform a discounted cash flow (DCF) valuation.

[ 15 marks ]

(iv)Perform also valuation using the dividend discount model (DDM).

[ 15 marks ]

(v)Perform a relative valuation analysis against other shipping firms(you must choose

carefully: please read the case properly) from data as per Exhibit 5.

[ 10 marks ]

2.Should the remaining Neptune Orient Lines shareholders accept the offer of SG$1.30

per share?

[ 5 marks ]

3.Why did NOL bond prices drop(see Exhibit 8)following the announcement of the

acquisition?

[ 5 marks ]

4.Why did the individual NOL bonds react differently?

[ 5 marks ]

Questions reference as here below

https://www.coursehero.com/tutors-problems/Finance/11051719-1-Compute-the-WACC-2-Forecast-FCFs-and-perform-a-DCF-va/