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 7 rate Dantzler's WACC is 16 Year 1 2 3 FCF ($ millions) $17 $32 $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 Corporate valuation Dollars shares in millions FCF 1 ($17 00) FCF 2 $32 00 FCF 3 $60 00 Constant growth rate, g n 7 00 WACC 16 00 Market value of debt $187 00 Common shares outstanding 31 0 1 2 3 4 FCFs ($17 00) $32 00 $60 00 Horizon value Total FCFs PV of FCFs to investors Firm value today Market value of equity, MV Equity Price per share, P 0 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 $ million C Suppose Dantzler has $187 million of debt and 31 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 $

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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

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 7% rate. Dantzler's WACC is 16%.

Year 1 2 3

FCF ($ millions) - $17 $32 $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.

Corporate valuation

Dollars/shares in millions
FCF₁	($17.00)
FCF₂	$32.00
FCF₃	$60.00
Constant growth rate, g_n	7.00%
WACC	16.00%
Market value of debt	$187.00
Common shares outstanding	31

		0	1	2	3	4
FCFs			($17.00)	$32.00	$60.00
Horizon value
Total FCFs

PV of FCFs to investors

Firm value today

Market value of equity, MV_Equity
Price per share, P₀

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.

$ ____ million

C. Suppose Dantzler has $187 million of debt and 31 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.

$ ____