Question
From the information given below, calculate ABC Inc.s free cash flow (FCF) for the year 2020: Date 12/31/2019 1/31/2020 Current Assets $360 $372 millions Current
From the information given below, calculate ABC Inc.s free cash flow (FCF) for the year 2020:
| Date | 12/31/2019 | 1/31/2020 |
|
| Current Assets | $360 | $372 | millions |
| Current Liabilities | $201 | $247 | |
| Fixed Assets | $250 | $300 | |
| EBITDA |
| $180 | millions |
| Depreciation | $30 | ||
| EBIT | $150 | ||
| Interest Expenses | $30 | ||
| Income after Taxes | $90 | ||
| Dividend Paid |
| $40 | |
| Tax Rate |
| 25% |
b) An experienced analyst believes that the growth rate of the FCF for the next 5 years will be 20% per year, and that after 5 years the growth rate will slow down to 4% per year forever. ABCs cost of capital is 12%. The company has a debt of $950 million, and 40 million common shares outstanding. Calculate the value of the company, the value of its equity, and the value of its stock per share.
Please show formulas in excel. Here are some outlines to reference:
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