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Did problems #1, #3, and #4. If you can check accuracy of those, and help me with #2 I cannot get the graph done. I
Did problems #1, #3, and #4. If you can check accuracy of those, and help me with #2 I cannot get the graph done. I know it needs to be done using what-if analysis.
(1). Compute free cash flow to equity (FCFE) for McDonald's (MCD) from 2018-2022. (4 points.) (2). Draw a line chart (not a scatter chart) which includes two series of data, namely: net income and free cash flow to equity from 2018-2022. The horizontal axis should be the years. Make the title of the chart "MCD: Net Income vs Free Cash Flow to Equity 2018-2022". (2 points.) (3). Assume the cost of equity is 10% and the constant growth rate of the FCFE is 2% for MCD. Compute the total equity value for MCD based on constant-growth FCFE model at the end of 2022. (2 points.) (4). The number of shares outstanding for MCD is 728 million. Find the price per share of MCD. ( 2 point. Hint: Price per Share = Value of Total Equity / Number of Shares Outstanding.) McDonald's Corp. (MCD) \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \\ \hline \multicolumn{11}{|l|}{ Fiscal Year ended December 31: } \\ \hline Net income & 5,924 & 6,025 & 4,731 & 7,545 & 6,177 & =B6 & =C6 & =D6 & =E6 & =F6 \\ \hline Depreciation, Amortization \& other noncash charges & 1,515 & 1,799 & 1,746 & 1,142 & 1,854 & =SUM(B7:B9) & = SUM (C7:Cg) & =SUM(D7:D9) & = SUM(E7:E9) & =SUM(F7:F9) \\ \hline Changes in working capital & (473) & 299 & (212) & 454 & (645) & =B10 & =C10 & =D10 & =E10 & =F10 \\ \hline Capital expenditure & (2,742) & (2,394) & (1,641) & (2,040) & (1,899) & =B13 & =C13 & =D13 & =E13 & =F13 \\ \hline Net Borrowing & 2,131 & 3,236 & 2,238 & (1,071) & 1,198 & =SUM(B16:B17) & =SUM(C16:C17) & = SUM(D16:D17) & = SUM(E16:E17) & = SUM(F16:F17) \\ \hline Free cash flow to equity (FCFE) & 6,355 & 8,965 & 6,862 & 6,030 & 6,685 & =SUM(K5:Kg) & =SUM(L5:L9) & =SUM(M5:M9) & =SUM(N5:N9) & =SUM(05:09) \\ \hline re & 10% & & & & & & & & & \\ \hline g & 2% & & & & & & & & & \\ \hline & & & & & & & & & & \\ \hline Number of shares outsanding & 728 & & & & & & & & & \\ \hline & & & & & & & & & & \\ \hline & & & & & & & & & & \\ \hline Total Equity Value & 85233.75 & =011(1+ & 14)/(K13 & & & & & & & \\ \hline & & & & & & & & & & \\ \hline Price per share & 117.08 & =K19/K16 & & & & & & & & \\ \hline \end{tabular}Step by Step Solution
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