Excel Online Structured Activity: Corporate valuation 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 8% rate. Dantzler's WACC is 15%. Year FCF ($ millions) J mm 0 www - $11 2 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. $14 million 3 $52 Open spreadsheet 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. $ million b. 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. c. Suppose Dantzler has $82 million of debt and 19 million shares of stock outstanding. What is your estimate of the current price per share? Round Year FCF ($ millions) $ H - $11 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. X Open spreadsheet 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. $ Check My Work $14 million $52 b. 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. million c. Suppose Dantzler has $82 million of debt and 19 million shares of stock outstanding. What is your estimate of the current price per share? Round your answer to two decimal places. Write out your answer completely. For example, 0.00025 million should be entered as 250. Reset Problem A 1 Corporate valuation 2 3 Dollars/shares in millions 4 FCF 5 FCF 6 FCF, 7 Constant growth rate, g 8 WACC 9 Market value of debt 10 Common shares outstanding 11 12 13 FCFS 14 Horizon value Total FCFS 15 16 17 18 19 Firm value today 20 PV of FCFs to investors 21 Market value of equity, MVEquity 22 Price per share, Po 23 24 Formulas 25 26 FCFS 27 Horizon value 28 Total FCFs 29 30 31 32 Firm value today 33 PV of FCFs to investors 34 Market value of equity, MVE 35 Price per share, Po 36 37 B -$11.00 $14.00 $52.00 8.00% 15.00% $82.00 19 10 0 #N/A ANIA #N/A C 1 -$11.00 1 -$11.00 N/A #N/A D 2 $14.00 2 $14.00 N/A N/A E 3 $52.00 3 $52.00 #N/A N/A #N/A F UNIA G
