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please show all the steps in Excel. thank you Instructions Find the shareholder value per share using a discounted cash flow analysis. Calculate the stock's
please show all the steps in Excel. thank you
Instructions Find the shareholder value per share using a discounted cash flow analysis. Calculate the stock's margin of safety. Be sure that the formulas behind all calculations are provided in your model. Note: Use the CAPM to find the cost of equity. Assumptions NOPAT in current year 0 NOPAT growth Capital use in current year o Growth in capital use - Forecast period in years) B NOPAT growth in perpetuity 7 Risk-Free Rate 5 Beta 5 Expected return on the market 7 Credit Spread 3 Market value of equity Market value of debt Marginal Tax Rate 1 Shares outstanding 2 3 4 -5 DCF Model 1100 10% 100 10% 5 0% 3.5% 1.2 8% 1% 15000 2500 30% 1000 Instructions Find the shareholder value per share using a discounted cash flow analysis. Calculate the stock's margin of safety. Be sure that the formulas behind all calculations are provided in your model. Note: Use the CAPM to find the cost of equity. Assumptions NOPAT in current year 0 NOPAT growth Capital use in current year o Growth in capital use - Forecast period in years) B NOPAT growth in perpetuity 7 Risk-Free Rate 5 Beta 5 Expected return on the market 7 Credit Spread 3 Market value of equity Market value of debt Marginal Tax Rate 1 Shares outstanding 2 3 4 -5 DCF Model 1100 10% 100 10% 5 0% 3.5% 1.2 8% 1% 15000 2500 30% 1000Step by Step Solution
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