Question
Please answer in excel (Challenge problem) The last 5 years results for Niccair Corp. are given below. Value the companys stock based on a model
Please answer in excel
(Challenge problem) The last 5 years results for Niccair Corp. are given below. Value the companys stock based on a model of FCF growth of your own design and the following additional facts. (This is not an easy problem, and it has no explicit answervaluation is often like that!)
Niccairs 2003 year-end debt is $750 million.
Niccairs 2003 year-end cash is $50 million.
The company has a cost of debt of rD = 5%.
The company has 44,080,000 shares outstanding; the end-2003 share price is $37.
Niccairs share = 0.437, rf = 3%, and E (rm) = 12%.
| 31-dec-15 | 31-dec-14 | 31-dec-13 | 31-dec-12 | 31-dec-11 | |
| Net income | $ 105.300.000 | $ 128.000.000 | $ 122.100.000 | $ 35.800.000 | $ 116.300.000 |
| depreciation | $ 161.700.000 | $ 155.000.000 | $ 148.800.000 | $ 145.100.000 | $ 141.600.000 |
| changes in net working capital | $ -12.600.000 | $ 268.300.000 | $ 491.300.000 | $ 233.000.000 | $ 213.400.000 |
| capital expenditures | $ -181.300.000 | $ -192.500.000 | $-185.700.000 | $ -158.400.000 | $ -154.000.000 |
| net interest paid before taxes | $ -41.100.000 | $ -34.600.000 | $ -46.900.000 | $ -50.600.000 | $ -45.500.000 |
| tax rate | 37,84% | 31,03% | 32,62% | 16,94% | 34,56% |
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