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Can somebody help me figure out parts A and B in excel please. VALUING HOUDA MOTORS Base year FCF Just to check the results High
Can somebody help me figure out parts A and B in excel please.
VALUING HOUDA MOTORS Base year FCF Just to check the results High growth rate, grigh Normal growth rate, gremis Number of high growth years Term 1 factor: (1+gtigh)/(1+WACC) WACC Debt Cash Term 1: PV of high-growth cash flows Term 2: PV of normal-growth cash flows Enterprise value Add cash Subtract debt Value of equity Number of shares, end 2003 100,000,000 Equity Valuation Method Part a Share value Houda Motors has a just announced results that show that the FCF for the past year is If cash flows occur in mid-year, then: $25 million. An experienced analyst beleives that the growth rate of the FCF for the Value of equity next year 10 years will be 25% per year and that after 10 years the growth rate will be Part b Share value 7% annually. Houda's WACC is 18%, and the company has 100 million shares iutstanding. a. Value the shares assuming that the FCFs occur at year-end. Houda has no debt and no excess cash reserves. b. Suppose that the FCFs occur in mid-year. What would your answer be nowStep by Step Solution
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