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The BC security analyst group needs to make investment recommendation as of September 31, 2012 for Best Buy to its clients. To estimate a fundamental

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The BC security analyst group needs to make investment recommendation as of September 31, 2012 for Best Buy to its clients. To estimate a fundamental value of the company, the group has decided to use a DCF method using a cost of capital of 10:21 On September 31, 2020, the number of shares outstanding is 5336.7 million and the price per shares 20. The cash flow projections for the next five year is summarted in the below table 2015 1,236.3 1,026.4 Period Ending March 31 (Unit 5 Milion) EBIT Clepreciation & Amortization Deferred Takes Others changes in Working Capital Capital Expenditures Taxes Total Univered Free Cash Flows 20131 1.5024 9512 030.01 00 (296,5) (749.5) (500 36.4 2014 13196 9893 (13401 0.0 356 (7705) (446.8) 993.5 210 0.0 26 2016 E 1,1573 1,0601 (300) 0.0 253 (693) 0391.99 1.1203 2017 1,144.9 1.0347 (134.0) 0.0 1126) 16833) (3877) 1,022,0 (760.03 (4180) 1,1383 1. The PV of for the next five years is (Round to the nearest tenth.) and the present value of the terminal 2. When the company's EWEBITDA multiple s 5.3, the terminal value (.. EV) in year 5 using the multiple method would be value would be (Round to the nearest tenth.) when the amount of Net Dubit, Non-controlling 3. The estimated enterprise value (EV) of Best Buy is and the equity value is Interests, and preferred securities is $ 1,546.0 MM. (Round to the nearest tenth.) 4. The fundamental stock price per share would be Cound to the nearest tenth.) 4. The fundamental stack price per share would be (Round to the nearest tent) recommendation, buy or sell because the current stock of BEST BUY IS 5. Based on the above value, the analyst group can make a (.e. overvalued or undervalued.)

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