Valuation of the Firm (By Aswath Damodaran, 3rd edtion)
	Chapter 14 (AD)
	FCFE
14-2	Kimberly-Clark is a household product manufacturer
	It reported earnings per share (EPS) of $ 3.20 in 1993.
	it paid dividends per share (DPS)of $ 1.70 in that year.
	The firm reported depreciation of $ 315 million in 1993 and
	Capital Exp of $ 474 million.
	There were 160 million shares outstanding, trading at $ 51 per share.
	This ratio of cap ex to depreciation is expectedt to be maintained in the long term.
	Woking capital needs are negligible.
	Kimberly-clark had debt outstanding of $ 1.60 billion.
	It intended to maintain its current financing mix of debt and equity to
	finance future investment needs.
	The firm was in the steady state and earnigns were expected to
	grow 7% a year.
	The stock had a beta of 1.05.
	The T-Bond rate was 6.25%.
	The Risk premium was 5.5%.
a)	Estimate the value per share, using the DDM.
b)	Estimate the value per share, using the FCFE model.
c)	How would you explain the difference between the models?
	Which one would you use as your benchmark for comparison to the market price?