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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
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%. -$6 $33 $60. 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.
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 45 rate. Dantzler's WACC is 10% 0 1 2 3 FCFIS millions 333 360 The data has been collected in the Microsolt Excel Online file below. Open the spreadsheet and perform the repaired analysis to answer the questions below. Open spreadsheet What is Danteler's horizon, ar continuing value? (wint. Find the value of all free timh fows beyond Year 3 discounted back to Year 2.) Round your answer to two decimal silaces like yout anwar in millions. Per exemple, an awer of $12,850,000 should be entered 13.8. $948,26 million 1. What is the firm's value today Round your snwwer to two decimal places. Enter your answer in millions. For example, in answer of $13,850,000 should be entered as 13.55. Do not found your intermediate calculations 5 Suppose antalet has $127 million of debt and 19 milion shares of stock outstanding. What is your estimate of the current ce per share? Round your answer to two decimal places, Write out your answer completely. For example, 0.00025 million should be entered as 250 37.96 B D E F 4 -$6.00 $33.00 $60.00 4.00% 10.00% $127.00 19 0 4 1 -$6.00 2 $33.00 3 $60.00 A 3 Dollars/shares in millions FCF 5 FCF 6 FCF 7 Constant growth rate, gn 8 WACC 9 Market value of debt 10 Common shares outstanding 11 12 13 |FCFS 14 Horizon value 15 Total FCFs 16 17 PV of FCFs to investors 18 19 Firm value today 20 21 Market value of equity, MV Equity 22 Price per share. Po 23 24 Formulas 25 26 FCFS 27 Horizon value 28 Total FCFS 29 30 PV of FCFs to investors 31 32 Firm value today 33 34 Market value of equity, MVEquity 35 Price per share, P. 1 -$6.00 2 $33.00 4 #NA 3 560.00 #N/A #N/A #N/A #N/A #N/A #N/A #N/A SN/A #N/A #N/A 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.
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.
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