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ap-Cangan taming MINDTAP a Search this course vity: Corporate valuation X Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free

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ap-Cangan taming MINDTAP a Search this course vity: Corporate valuation X Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 4% rate. Dantzler's WACC is 10% Year $45 FCF ($ millions) - $13 $16 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet 3. What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. million b. What is the firm's value today? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round your intermediate calculations. million c. Suppose Dantzler has $128 million of debt and 24 million shares of stock outstanding. What is your estimate of the current price per share? Round your answer to two decimal places. Write out your answer completely. For example, 0.00025 million should be entered as 250 1 Corporate valuation Dollars/shares in millions FCF, FCF2 FCF Constant growth rate, 8 WACC Market value of debt 10 Common shares outstanding $13.00 $16.00 $45.00 4.00% 10.00% $128.00 24 $16.00 13 FCFS 14 Hortzon value 15 Total FCFS 17 PV of FCFs to investors 19 Firm value today Market value of equity, MV quay Price per share, P. Formulas $16.00 26 FCFS 27 Horizon value Sheetal $45.00 M Formulas $13.00 $16.00 $45.00 FCFs Horizon value Total FCFs NA 99 UNA UNA UNA BO PV of FCFs to investors INVA Firm value today Market value of equity, MVE Price per share, P

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