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Free Cash Flow non-constan growth. I solved for the 2 highlighted cells but im not sure if they're correct. Price sensitivity calculations need to be
Free Cash Flow non-constan growth. I solved for the 2 highlighted cells but im not sure if they're correct. Price sensitivity calculations need to be solved for.
Solve for: 21E Value 23B Value, i 6, 7, 8, 12, 13, 14 Values, Values in J and K autofill
n c. E F G H J K L Price Sensitivity Change Growth Rate +/- 10% when WACC = 11% Price Price Change 4.5% $ #DIV/0! 5.0% 5.5% $ #DIV/0! A B D 1 Data for FCF Valuation 2 3 NonConstant Growth FCF model 4 FCF(1) = $ (10) million 5 FCF(2) = $ 20 million 6 FCF(3) = $ 35 million 7 8 WACC = 11.0% 9 g(1) = 5.0% 10 11 ST investments = $ 100 million 12 Debt = $ 200 million 13 Preferred stock = $ 50 million 14 Shares outstanding = 10 million 15 16 17 1. Find Value of Operations (nonconstant growth) 18 19 Year 0 1 2 20 FCF $ (10) $ 20 21 22 Find PV of these values 23 Vop = $57.02 Change WACC +/- 10% when growth = 5% Price Price Change 9.90% $ #DIV/0! 11.00% 12.10% $ #DIV/0! 3 4 $ 35 $36.75 $612.50
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