Based on a real numerical example of a hypothetical company, work out the projected cash flow, Terminal value calculation and CPPC (Wacc)

In this project, you must explain and demonstrate the projection of free cash flow for at least 6 years, technical calculation of the terminal value of the company and calculation of the CPPC (WACC).

Calculate the value of the company according to FCL.

Establish a corporate final value range based on at least 4 values of the CPPC or discount rate of cash flows and the terminal value.

For this calculation, take into account the following assumptions for the last two years; And explain which is the best CPPC and why ?:

-Risk Free Rate (KLR): 2.8%

-Market Rate (Km): 6.2%

-Beta of the corporation: 0.90

-Corporate tax rate (t): 40%

- Average cost of liabilities or receivables (Kd): 12%

- Cost of capital according to the CAPM model (Ks): Find these values in accordance with the previous assumptions and with the CAPM model that is specified below and that is the topic of this week three.

- Relative weight (%) of liabilities or credits in total assets Wd: Find these values according to the balance of the last two years of the selected corporation from the first week.

- Relative weight (%) of equity or capital in total assets Ws: Find these values according to the balance of the last two years of the selected corporation from the first week.

Remember to use the following formulas for the calculations of the selected corporation from the first week:

CPPC = Wd * [Kd * (1- t)] + Ws * Ks

CAPM (Ks) = KLR + * (Km - KLR)