rate positively ..
i | ii | iii | iv=ii+iii | v | vi=iv*v | ||
year | FCF | Terminal value | Total cash flow | PVIF @ 13.8% | present value | ||
1 | 53.9 | 53.90 | 0.878735 | 47.36 | |||
2 | 67.4 | 67.40 | 0.772175 | 52.04 | |||
3 | 78.7 | 78.70 | 0.678536 | 53.40 | |||
4 | 76.1 | 76.10 | 0.596254 | 45.37 | |||
5 | 83.9 | 921.13 | 1,005.03 | 0.523949 | 526.59 | ||
724.77 | |||||||
Terminal value = | 83.9*104.3%/(13.8%-4.3%) | ||||||
921.13 | |||||||
Ans a) | Enterprise value = | 724.77 | |||||
Ans b) | Share price computation | ||||||
i | Enterprise value = | 724.77 | |||||
ii | Less: Debt value = | -320 | |||||
iii=i-ii | Equity value | 404.77 | |||||
iv | Number of share (mil)= | 35 | |||||
v=iii/iv | Share price = | 11.56 |
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