Question: Completely Answer question 4 which is asking What would happen if you changed your work in question 2 by lowering the FF forecast numbers for


4. What would happen if you changed your work in question 2 by lowering the FCF forecast numbers for 2021-2025 by 25% ? Show all of the steps in question 2 again but with the new change incorporated. By how much did the share price change? Why did the price go up or down? Discuss your analysis. Assume WACC is still 9.7%. (20 points) 2. Show how you use Nowak's forecast assumptions to find an estimated share price of $25.1. (25 points) - What is the PV of the FCF from years 2017-2025? (show your work) $3776 - What is the PV of the terminal value? (show your work) $29,416 - What is the enterprise value? (show your work) $33191.75+2081=35272.75 -What is the total equity value? (Hint: Assume Debt=0 here) (show your work) 35272.75 - How many shares are outstanding? 1404 -What is the estimated share price? 25.1 (total equity/shares outstanding)
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