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 5% rate. Dantzler's WACC is 15%.
| Year | 0 | 1 | 2 | 3 |
| ....... | ....... | ....... | ....... | ....... | ....... | ....... | ....... |
| FCF ($ millions) | ....... | ....... | ....... | ....... | ....... | ....... | ....... | ...... |
| | - $9 | $18 | $48 |
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.
Open spreadsheet
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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
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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
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Suppose Dantzler has $149 million of debt and 14 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.
$
Excel Online Structured Activity: Corporate valuation Dantzler Corporation is a fast-growing supplier af office products. Analysts project the fol Year FCF (S ing free cash rato. Dantrler's WACC is FCFs during the next 3 years after which FCF s expected to grow at a constant 5% rate Dantzler's ACC s 15%. aws $9$18 $48 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 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 milions. For example, an answer of $13,550,000 should be in millions. entered as 13.35 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. million c. Suppose Dantzler has $149 million of debt and 14 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 Corporate valuation Dollars/shares in millions FCF FCF FCF $9.00 $18.00 $48.00 5.00% 15.00% $149.00 Constant growth rate, gn WACC Market value of debt Common shares outstanding 4 9.00 FCFs Horizon value $18.00 $48.00 Total FCFs PV of FCFs to investors Firm value today Market value of equity, MV Price per sha re, P Formulas FCFs Horizon value $9.00 $18.00 $48.00 #N/A #N/A #N/A #N/A Total FCFs PV of FCFs to investors Firm value today Market value of equity, MV #N #N #N/A #N/A Price per share, Po Excel Online Structured Activity: Corporate valuation Dantzler Corporation is a fast-growing supplier af office products. Analysts project the fol Year FCF (S ing free cash rato. Dantrler's WACC is FCFs during the next 3 years after which FCF s expected to grow at a constant 5% rate Dantzler's ACC s 15%. aws $9$18 $48 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 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 milions. For example, an answer of $13,550,000 should be in millions. entered as 13.35 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. million c. Suppose Dantzler has $149 million of debt and 14 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 Corporate valuation Dollars/shares in millions FCF FCF FCF $9.00 $18.00 $48.00 5.00% 15.00% $149.00 Constant growth rate, gn WACC Market value of debt Common shares outstanding 4 9.00 FCFs Horizon value $18.00 $48.00 Total FCFs PV of FCFs to investors Firm value today Market value of equity, MV Price per sha re, P Formulas FCFs Horizon value $9.00 $18.00 $48.00 #N/A #N/A #N/A #N/A Total FCFs PV of FCFs to investors Firm value today Market value of equity, MV #N #N #N/A #N/A Price per share, Po
