Nathan & Katsumoto Incorporation (NK) is a company listed in a stock exchange. The relative financial information about the company updated in February 2021 is provided in the Excel file - NK.

Please use the information available from NK Excel file to analyse the companys financial history and future value by answering the following questions:

1. Using the companys 2020 end-period book asset value and 2016 end period book asset value to estimate the average growth rate in the period (A2020 = A2016 (1+g)^4). Based on the assumption that the company will continue to grow in the next four years with the speed of the four previous year period, and no growth afterwards, please estimate (through the discounted cash flow method) the current market equity value and share price at the beginning of year 2021. [Use the annual cash flow of the last year (2020) as the current level of cash flow, and use 15% as the cost of capital (WACC) to calculate the company value at the beginning of 2021]. Assume that the liability of the company at the beginning of 2021 is virtually the same as at the end of 2020.

Profit and Dividend Summary / Ratios 2018/12/31 US$000 12 months 2017/12/31 US$000 12 months 2016/12/31 US$000 12 months 2019/12/31 US$000 12 months 367,739 2,313 7,980 378,0321 390,028 860 365,825 412 -14,820 884 367,1211 -17,912 -3,185 -11,830 - 16,006 350,445 1,178 10,107 361,7301 - 17,069 0 -580 -27,713 522 342 391,2301 -15,167 - 1,000 -13,107 - 13,393 -517 0 26,074 27,0741 41,431 39,984 53,091 - 1,000 - 13,886 -5,046 105 - 102 0 0 19,678 12,7251 34,897 24,619 38,505 0 30,368 33,553 49,923 46,476 58,306 53,870 53,870 71,125 81,061 81,641 54,325 69,258 79,403 98,710 28.92 35.42 13.59 37.27 9 44.25 52.7 56.31 74.35 9 9 Period Ending: 2020/12/31 Denomination: US$000 Reporting Period: 12 months Sales Revenue 436,564 Interest Received 1,664 Other Revenue 39,637 Total Revenue 477,865) Depreciation 0 Amortisation 0 Interest Expense - 10,985 Tax -15,328 Minority Interests -76 Equity Earnings 0 Reported NPAT 53,344 Normalised NPAT 53,3441 Cash Earnings 52,298 EBT (Profit before Tax) 68,748 EBIT (Profit before Int. & Tax) 79,733 EBITDA (Profit before Int., Tax, 79,733 Depreciation & Amortisation) Adjusted EPS (0) 56.98 Adjusted Cash EPS () 55.86 Interim Dividend () 9 Final Dividend (0) 14 Adjusted DPS (!) 23 Ord Div Paid ($000) 21,534 Balance Sheet Summary Period Ending: 2020/12/31 Denomination: US$000 Shareholders Equity 525,846 Other Equity 523 Non-Current Liabilities 93,144 Current Liabilities 44,891 Equity & Liabilities 664,4041 Current Assets 109,837 Fixed Assets 106,760 Investments 32,039 Intangibles 415, 768 Total Assets 664,404 Issued Shares (000) 93,627 Adjusted Shares (000) 93,627 Ord Shareholders Equity (%) 44.27 Current Ratio 2.45 Adjusted NTA per share ($) 1.18 Ord Earnings : Sh/Equity (%) 48.46 Ord Earnings : Tot Funds (%) 21.45 13 13 13 13 22 20,598 22 22 22 20,598 20,598 21,046 2019/12/31 US$000 504,025 443 130,198 2017/12/31 US$000 495,259 354 145,021 2018/12/31 US$000 503,811 978 130,694 56,430 691,913 120,373 539,411 31,129 1,000 691,913 93,627 93,627 72.77 2016/12/31 US$000 493,713 -501 3,665 22,524 519,401 97,302 394,759 27,340 48,779 683,445 116,536 531,313 35,596 0 683,445) 93,627 93,627 73.75 2.39 5.38 2.52 1.86 46,458 687,0921 109,061 548,889 27,142 2,000 687,092 93,627 93,627 72 2.35 5.27 0 519,401 95,664 95,664 95.05 4.32 2.13 5.37 5.38 6.8 5.16 10.91 10.37 3.92 4.9