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Find the shareholder value per share using a discounted cash flow analysis. Calculate the stock's margin of safety. Be sure that the formulas behind
Find the shareholder value per share using a discounted cash flow analysis. Calculate the stock's margin of safety. Be sure that the formulas behind all calculations are provided in your model. Note: Use the CAPM to find the cost of equity. 5 7 Assumptions 3 NOPAT in current year 0 NOPAT growth 0 Capital use in current year 0 1 Growth in capital use 2 Forecast period (in years) 3 NOPAT growth in perpetuity 4 Risk-Free Rate 5 Beta 6 Expected return on the market 7 Credit Spread 8 Market value of equity 9 Market value of debt 0 Marginal Tax Rate 1 Shares outstanding 1100 10% 100 10% 5 0% 3.5% 1.2 8% 1% 15000 2500 30% 1000
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