Question
2020 Free cash flows to the firm313,782 Cash67,748 Other current assets28,828 Short-term debt124,158 Current portion of long-term debt36,752 Long-term debt (in long-term liabilities) 715,604 Shareholders'
2020
Free cash flows to the firm313,782
Cash67,748
Other current assets28,828
Short-term debt124,158
Current portion of long-term debt36,752
Long-term debt (in long-term liabilities) 715,604
Shareholders' equity99,327
EBITDA 331,809
2021
Free cash flows to the firm336,050
Cash 70,556
Other current asset29,406
Short-term debt115,446
Current portion of long-term debt 0
Long-term debt (in long-term liabilities) 694,970
Shareholders' equity107,449
EBITDA 334,379
2022
Free cash flows to the firm371,446
Cash78,307
Other current assets35,100
Short-term debt130,693
Current portion of long-term debt20,198
Long-term debt (in long-term liabilities) 703,366
Shareholders' equity124,063
EBITDA 366,463
2023
Free cash flows to the firm422,931
Cash87,891
Other current assets35,278
Short-term debt118,713
Current portion of long-term debt0
Long-term debt (in long-term liabilities) 767,525
Shareholders' equity143,199
EBITDA 438,673
2024
Free cash flows to the firm(101,802)
Cash104,170
Other current assets39,499
Short-term debt129,604
Current portion of long-term debt10,604
Long-term debt (in long-term liabilities) 769,901
Shareholders' equity150,992
EBITDA 440,626
2025
Free cash flows to the firm508,742
Cash111,536
Other current assets42,292
Short-term debt149,241
Current portion of long-term debt11,996
Long-term debt (in long-term liabilities) 855,446
Shareholders' equity172,344
EBITDA 463,909
2026
Free cash flows to the firm534,436
Cash126,012
Other current assets44,847
Short-term debt147,178
Current portion of long-term debt12,845
Long-term debt (in long-term liabilities) 967,777
Shareholders' equity198,457
EBITDA 447,457
2027
Free cash flows to the firm530,559
Cash121,675
Other current assets46,523
Short-term debt157,096
Current portion of long-term debt13,208
Long-term debt (in long-term liabilities) 924,258
Shareholders' equity182,790
EBITDA 490,333
Relevant information
Number of shares of stock113,857
WACC7.59%
Expected return of equity10.82%
Expected return of debt ??
Terminal growth rate2.21%
Exit EV/EBITDA multiple 15.98
End of historical period 12/31/2020
Valuation date9/24/2021
Please answer the following questions
Terminal value (as of end of forecast period)
Estimated enterprise value of the firm as of end of historical period
Estimated value of the firm's equity as of end of historical period
Estimated share price as of end of historical period
Estimated share price as of valuation date
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Fundamentals of Investments Valuation and Management
Authors: Bradford Jordan, Thomas Miller
7th edition
978-0078096785, 78096782, 978-0077861636, 77861639, 978-0078115660
