Question: I Show me the solution in excel with show the function Hedi Company operates in Health Care sector and experiences a high growth rate during
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Show me the solution in excel with show the function
Hedi Company operates in Health Care sector and experiences a high growth rate during COVID-19 pandemic outbreak. The financial manager asked you to evaluate the value of the share on December 31, 2020. The free cash flow (FCF) of the firm is $11,750,000. In 31 December 2020, the market value of debt is $5,000,000 and the cash is $1,500,000. The company has 200,000,000 shares outstanding. The Company experiences a high growth rate for the coming first five years of 25% thereafter it the FCF growth will slow to 7.5 % per year and forever. The cost of capital is 8%. The FCFs occur in midyear. 1) What is the share value of equity? 2) What is the value of equity if the cost Jf capital is 3%, 9%, 10%, and 14%
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