In 2020, the management of Rebecca Hall, Inc. (RHI) created a 2021 business plan to launch a new product into its nationwide market. Its 2021-2025 business plan calls for RHI to make the following capital expenditures and changes in net working capital, depreciation, and interest for its horizon period 2021 through 2025 to support the rollout of its new product and to support its supply chain to its customers.

RHI anticipates that sales and operating expenses will increase 10% annually for the years 2021 through 2025. After 2025, RHI projects that its sales and operating expenses will grow at the rate of inflation of 3% annually. Depreciation and Interest will change according to the table above.

RHIs most recent (2020) financial statements are:

Other financial information for RHI:

• Income tax rate on pre-tax income 25%

• CAPM rate of return RHIs stock investors require 12%

• Pre-tax interest rate on debt 10%

• Weighted average cost of capital 8%

TASKS:

1 -- [PART 1] -- Create a well-formatted spreadsheet (Excel of Google Sheets) that contains separate INPUT and COMPUTATIONS sections that computes using spreadsheet references / formulas / and functions RHIs free cash flows (FCFs] for the horizon period 2021 - 2025 and the constant growth period that begins in 2026.

2 -- [PART 2] -- Without making any changes to your responses to part [1], suppose that you calculated for RHI the following free cash flows for 2021 - 2025 and the constant growth period after 2025.

TASK >> Open a 2nd spreadsheet [tab] to create a well-formatted spreadsheet that estimates RHIs INTRINSIC VALUE per SHARE.