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Please solve on excel and include cell equations Houda Motors has just announced results that show that the FCF for the past year is $23
Please solve on excel and include cell equations
Houda Motors has just announced results that show that the FCF for the past year is $23 million. An experienced analyst believes that the growth rate of FCF for the next 10 years will be 25% per year and that after 10 years the growth rate will stabilize at 7% annually. Houda's WACC is 18% and it has 100 million shares outstanding. (Hint: You can find the FCFs for each year, but you can also value this using only formulas, you've got a fast-growing annuity and then a growing perpetuity as the two components of value here!) PUT YOUR ANSWERS HERE! a) Value the shares assuming that the FCFs occur at year-end. Houda has no debt and no excess cash reserves. b) Re-value the shares assuming that the FCFs occur at mid-yearStep by Step Solution
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