Question
Please help and dont use other anwers since they can be incorrect or incomplete, if possible screenshoot the excel and explain what formulas did you
Please help and dont use other anwers since they can be incorrect or incomplete, if possible screenshoot the excel and explain what formulas did you use! Thanks TTC recently introduced a new line of products that has been wildly successful. On the basis of this | |||||||
success and anticipated future success, the following free cash flows were projected: | |||||||
Year | FCF (in millions) | ||||||
1 | $5.5 | ||||||
2 | $12.1 | ||||||
3 | $23.8 | ||||||
4 | $44.1 | ||||||
5 | $69.0 | ||||||
6 | $88.8 | ||||||
7 | $107.5 | ||||||
8 | $128.9 | ||||||
9 | $147.1 | ||||||
10 | $161.3 | ||||||
After the 10th year, TTC's financial planners anticipate that its free cash flow will grow at a constant rate | |||||||
of 6%. Also, the firm concluded that the new product caused the WACC to fall to 9%. The market value | |||||||
of TTC's debt is $1,200 million; it uses no preferred stock; and there are 20 million shares of common | |||||||
stock outstanding. Use the corporate valuation model approach to value the stock. |
The problem should be solved using Excel . Build a model showing all of your calculations.
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