Excel Activity: Free Cash Flow Valuation Model

Start with the partial model in the file Ch$08$ P$25$ Build a Model.xlsx$.$ Selected data for the Derby Corporation are shown

here. Use the data to answer the questions.

The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to

answer the questions below. Do not round intermediate calculations.

Start with the partial model in the file Ch$08$ P$25$ Build a Model.xIsx. Selected data for the Derby Corporation are shown

here. Use the data to answer the questions.

INPUTS $($In Millions$)$

Year

The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to

answer the questions below. Do not round intermediate calculations.

A$)$ Calculate Horizon value. Assume growth becomes constant after year $3.$

B$)$ Calculate the PV of the HV$,$ the PV of FCF$,$ and estimated Year$-0$ Value of Operations.

C$)$ Calculate estimated Year$-0$ Price Per Share of Common Equity