Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I'm sure it's 100% correct.pls solve this Question useing excel ...dont reject ??? all information that u need for valution avilabable at ...https://web.pex.ps Firm Valuation

image text in transcribed

I'm sure it's 100% correct.pls solve this Question useing excel ...dont reject ??? all information that u need for valution avilabable at ...https://web.pex.ps

image text in transcribed
Firm Valuation Objective: To value your firm. based upon Its existlng management. and your expectations for the future. Key Questions: - What type of cash flow (dividends, FCFE or FCFF) would you choose to discount for this rm? - What growth pattern would you pick for this rm? How long will high growth last? ' What is your estimate of value of equity in this firm? How does this compare to the market value? Framework for Analysis: 1. Cash Flow Estimation - What is this firm's accounting operating income? Would you adjust it for your valuation? - What is your rm's effective tax rate? What is its marginal tax rate? Which would you use in your valuation? - i-iow mucn aid your tirm reinvest last year In internal investments, acquisitions, RED and working capital? 2. Growth Pattern Choice - How fast have this company's earnings grown historically? - How fast do analysts expect this company's earnings to grow in the future? ' What do the fundamentals suggest about earnings growth at this company? (How much is being reinvested and at what rate of return?) - If there is anticipated high growth. what are the barriers to entry that will allow this high growth to continue? For how long? 3. Valuation . What Is the value of the operating assets of the firm, based upon a discounted cash ow model? ' Does the rm have cash and non-operating assets and what Is their value? - Are there equity options outstanding (management options. convertible bonds) and how much are they worth? - What is the value of equity per share? Getting Information for valuation Most of the information that you need for valuation come from your current or past nancial statements (available at Palestine stock exchange website). You will also need a beta (stock price and market index are available on Palestine stock exchange website). https://web.pex.ps

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Management

Authors: Cheol Eun, Bruce G. Resnick

8th edition

125971778X, 978-1259717789

More Books

Students also viewed these Finance questions

Question

Draw a picture consisting parts of monocot leaf

Answered: 1 week ago