DCF VALUATION MODEL

You must use the Template for this. The image below shows the excel template that must be used; compute the value of one share of Classtime stock.

Other than the original source data entered into the input section, you may not type any additional numbers, except 1, into Excelall values must be formula-driven. You may not enter any numbers, except 1, into any formulas. If the spreadsheet is done correctly, any amount given could be changed & everything will be recomputed and show the new answers. (For instance, a new sales growth could be entered and the share price would recompute.) Round each cell to the nearest thousand dollars. All listed line items must have amounts computed.

Valuation of Classtime Corp

Here is some data about Classtime Corp (all $ are in 000s):

Sales for last year were $822,000. Sales are predicted to grow at 8.5% for years 1-5 and 4% after that.

The following are expressed as a % of sales:

COGS % of Sales - 39%

Gr Assets % of Sales - 36%

Inv. % of Sales - 22%

Assume Inventory is the only working capital account.

Depreciation is 16% of Gross Fixed Assets

The company's tax rate is 21%

Classtime Corp. has a WACC of 13%

The market value of bonds is $400,000.

They have 80 million shares of common stock outstanding.

Compute the value per share of Classtime Corp.