Question: Global Harmonic Control Systems (GHCS) summary income statement is stated below. Year (000,000) 1 2 3 4 5 NOPAT$ 120 132 145 156.82 169.36 Net

Global Harmonic Control Systems (GHCS) summary income statement is stated below.

Year (000,000) 1 2 3 4 5

NOPAT$ 120 132 145 156.82 169.36

Net Investments$ 50 55 60.5 65.34 70.57

Free cash flow$ 70 77 84.7 91.48 98.79

GHCS has 12 million shares outstanding and a company weighted average cost of capital of 16 percent, appropriate for its risks. The firm projects that FCF will grow perpetually after year 5 at the rate of 6 percent.

What is GHCS price per share?

Stocks can also be valued by multiples and an investor may estimate the horizon value of firm via a multiple rather than the growing perpetuity method. IF GHCS P/E is 7, what is the value per share of GHCS using the multiples approach to estimating the horizon value?

Based on your answers to (a) and (b) which method is a better method?

I want learn how to solve this using excel.

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