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Please fill in orange cells in the table using excel formulas. DISCOUNTED CASH FLOW (DCF) in millions $'s 1 2 3 4 5 Revenues $600.00
Please fill in orange cells in the table using excel formulas.
| DISCOUNTED CASH FLOW ("DCF") | ||||||
| in millions $'s | 1 | 2 | 3 | 4 | 5 | |
| Revenues | $600.00 | $660.00 | $700.00 | $750.00 | $800.00 | |
| Expenses | -$360.00 | -$396.00 | -$420.00 | -$450.00 | -$480.00 | |
| Taxes | -$60.00 | -$66.00 | -$70.00 | -$75.00 | -$80.00 | |
| A) EBIT(1-) or NOPAT | ||||||
| Net investments & NCWC | -$120.00 | -$132.00 | -$140.00 | -$150.00 | -$160.00 | |
| B) FREE CASH FLOW TO FIRM ("FCFF') | ||||||
| Discount Rate (WACC) | 12% | |||||
| PV OF FCFF (per year) | ||||||
| 1)PV of cash flows Year 1- 5 | ||||||
| Terminal Value | 3% | TV | $915.56 | |||
| 2) Add PV of terminal value | TV = (80 x 1.03)/(.12-.03) | |||||
| C) Value of Firm | ||||||
| Funded debt (interest baring debt less cash) | -$100.00 | |||||
| D) Value of Equity | ||||||
| Number of common shares outstanding | 10.00 | million | ||||
| E) Value per share | ||||||
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Intermediate Financial Management
Authors: Eugene BrighamPhillip Daves
1st Edition
0324594712, 9780324594713
