Question
You are a senior financial analyst of a firm based in Melbourne. You have been assigned with the task of training interns who recently joined
You are a senior financial analyst of a firm based in Melbourne. You have been assigned with the task of training interns who recently joined your firm on how to use the free cash flow model to estimate the value of a company. You have collected data on the following data: Using the information you have collected above, perform calculations to explain to interns as to how the following are calculated:
i. Free cash flow to firm
ii. Free cash to equity
iii. Value of the firm according to the free cash flow to firm method
iv. Value of the firm according to the free cash flow to equity method
v. Estimated price of an equity share according to the free cash flow to firm method and the free cash flow to equity method Notes: You need to show detailed calculations for each year in order to receive full marks for this question.
PE Assessment Case study analysis + Not syncing File C:/Users/aksha/OneDrive/Desktop/Assessment3-Case%20study%20analysis.pdf + D Page view | A Read aloud | Draw 1 of 3 a Highlight Erasel & You are a senior financial analyst of a firm based in Melbourne. You have been assigned with the task of training interns who recently joined your firm on how to use the free cash flow model to estimate the value of a company. You have collected data on the following data: 2020 2019 46000 Year Long-term Debt (SM) Profits (SM, after tax) Interest ($M, after tax) Working Cap (SM) Depreciation (SM) Cap Spending ($M) Cost of equity 12,000 900 10,000 26,000 46,000 18,000 950 9,000 27,000 25,150 0.11 2021 47,000 16,000 1,050 12,000 28,000 27,00 0.12 2022 48,000 22,000 1,150 20.000 28,000 31,000 0.13 2023 50,000 25,000 1,275 18,000 30,000 35,000 0.11 1 0.12 0.12 0.13 0.12 WACC Number of equity shares (Million) Terminal growth rate 2,000 0.07 Ikeina the information au collarta shua narform calculatione in avnlsin tintame w to how the O @ H Type here to searchStep by Step Solution
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