Question
Sensitivity Analysis on the Discounted Free Cash Flow to Invested Capital Problem. You just completed the valuation of the subject company using a 10.22% WACC
Sensitivity Analysis on the Discounted Free Cash Flow to Invested Capital Problem. You just completed the valuation of the subject company using a 10.22% WACC and a 3.50% growth rate in the terminal value perpetuity. Increase the perpetuity growth rate to 5.50% and change the WACC to 6.50%.
Compute the new valuation estimate of the share price. Assume mid-year discounting and re-compute the price per share as at 12/31/2019. Present your answer to the second decimal place and do not round until the end. (i.e. $12.345678 would be written as 12.35)
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