Question: DCF valuation approach, what would be the IPO objective range using a DCF method. (a) Free Cash-Flow to the Firm (FCFF) can be computed from

DCF valuation approach, what would be the IPO objective range using a DCF method.

(a) Free Cash-Flow to the Firm (FCFF) can be computed from Exhibit 3.

(b) the computation and explanation why the WACC equals 8.55%.

(c) The calculation of the Terminal Value assuming it is the average of the 2 methods described in the Case study. Note that the perpetual growth rate (g) is 2.5% and that the WACC is equal to 8.55%.

(d) Finally, after discounting the FCFF and Terminal value and after consideration of the Net Debt (which includes the Holding Debt), what is the computation of the Pre-money share price (with 2,500 million shares) and Post-money share price (with 2,500 million shares and the newly shares

issued).

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