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please provide detail on how to arrive at total Value of equity, PVOP, FCF, horizon Value, and Stock Price. show work utilizing excel =17.15 3.
please provide detail on how to arrive at total Value of equity, PVOP, FCF, horizon Value, and Stock Price. show work utilizing excel
=17.15 3. Based on the following information, use the equity free cash flow model to estimate the firm's stock price per share. Year 0 1 Revenue 500.00 Fixed costs 90.00 200.00 2.00 70.00 Variable co Additional investment in NWC Addtional Investment in operating long-term Assets Depreciation Interest expenses Newly issued debt Principle repayments 65.00 35.00 22.00 16.00 6.00 Net change in debt Tax rate 0.40 Market value of the firm: Marka Price per share Number of shares Short-term deb! 100.00 590.00 Long-term debe Common stock equity Total 18.00 100 1.800.00 2.490.00 0.1400 Coat of equity (R) Assume that the FCFE growth rate is 10% from year 1 through year 5 and 5% afterwards. a Year [156] Revenue NY 500.00 80.00 Fixed costs (FC) -Variable costs VC) -200.00 Depreciation (DEP -65.00 IRV-FC-VC-DEPT 155.00 (RV-FC-VC-DEPX11 93.00 65.00 -200 Depreciation (DEP Add Inv. In NWC (AINWC) Add. Ing. In opening long-term assets (AIOLTA) Free cash flow (FCF) -70.00 86.00 -21.00 After-tax interest expenses ((1T) Net change in debt ND Free cash flow to equity holders 6.00 71.00 Growth rate per year from year 1 through year 5 0.10 Growth rate after year 5 0.05 1 2 3 Year 4 5 FCFE.year 1 through year 5 71.00 78.10 85.91 94.50 103.96 Horizon value 1,212.76 Total 71.00 78.10 85.91 94.50 1,316.71 Total value of equity 920.18 100 Number of shares Estimated stock price per share 9.20 FormulasStep by Step Solution
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