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Looking help with determining the letter f. horizon enterprise value for year 5 using equation 9.24 (attached) 12:38 PM Verizon LTE Done Problem7 Finance Alphabet.
Looking help with determining the letter f. horizon enterprise value for year 5 using equation 9.24 (attached)
12:38 PM Verizon LTE Done Problem7 Finance Alphabet. docx To determine the stock value based on the discounted free cash flow method: a Forecast the free cash flows using the historic data from the financial statements downloaded from Yahoo! to compute the three-year average of the following ratios: i EBIT/Sales ii Tax Rate (Income Tax Expense/Income Before Tax) iii Property Plant and Equipment/Sales iiii Depreciation/Property Plant and Equipment v Net Working Capital/Sales Average Net Working Capital b Create a timeline for the next seven years. & d Use the average ratios computed in part (a) to forecast EBIT, property, plant and equipment, depreciation, and net working capital for the next seven years. 2020 c Forecast future sales based on the most recent year's total revenue growing at the five-year growth rate from Yahoo! for the first five years and the long-term growth rate for years 6 and 7. The implied long term growth rate based on last stock info is 6.8%. A higher rate for long term growth would mean a riskier company. 12:38 PM Verizon LTE Done Problem7 Finance Alphabet. docx To determine the stock value based on the discounted free cash flow method: a Forecast the free cash flows using the historic data from the financial statements downloaded from Yahoo! to compute the three-year average of the following ratios: i EBIT/Sales ii Tax Rate (Income Tax Expense/Income Before Tax) iii Property Plant and Equipment/Sales iiii Depreciation/Property Plant and Equipment v Net Working Capital/Sales Average Net Working Capital b Create a timeline for the next seven years. & d Use the average ratios computed in part (a) to forecast EBIT, property, plant and equipment, depreciation, and net working capital for the next seven years. 2020 c Forecast future sales based on the most recent year's total revenue growing at the five-year growth rate from Yahoo! for the first five years and the long-term growth rate for years 6 and 7. The implied long term growth rate based on last stock info is 6.8%. A higher rate for long term growth would mean a riskier company Step by Step Solution
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