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PART 2: Calculate Current Target Price with Inputs Provided (30 points total) Instructions: Write the answers in the blanks provided or in the spaces
PART 2: Calculate Current Target Price with Inputs Provided (30 points total) Instructions: Write the answers in the blanks provided or in the spaces below each question. You may expand the spaces for more space, but your answers must be hand-written. You may attach or include additional pages with your work but keep everything in order. You may check your answers using my Excel spreadsheet that I have provided. However, you must show me all of your calculations by hand like I did in the class lecture. Approximate time = 10 minutes per question. Use the information below for FUNance, Inc. (FUN) to solve the next five problems (3 points each). A GIVEN WACC Beta = Market Return= Risk Free Rate Weight of Debt = Weight of Equity= After-Tax Cost of Debt = 0.95 10.50% 1% 10% 90% 3% DDM Dividend/Share in Year One = D(1)= $1.55/share Terminal Gr 3% Interim Gr= 5% Blended Weight 20% DCF Free Cash Flow in year One FCF(1) = $899 Terminal Gr 3% Interim Gr 7% P/E Total Debt= Cash & Cash Eq. = Shares Outstanding= Blended Weight Next Year EPS $455 $135 300 60% $0.75/share Current P/E= 45 Blended Weight 20% A T 17 +1
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