Question: Instructions Find the shareholder value per share using a discounted cash flow analysis. Calculate the stock's margin of safety. Be sure that the formulas behind

Instructions Find the shareholder value per share using a discounted cash flow analysis. Calculate the stock's margin of safety. Be sure that the formulas behind all calculations are provided in your model. Note: Use the CAPM to find the cost of equity. Assumptions NOPAT in current year 0 1100 NOPAT growth 10% Capital use in current year 0 100 Growth in capital use 10% Forecast period (in years) 5 NOPAT growth in perpetuity 0% Risk-Free Rate 3.5% Beta 1.2 Expected return on the market 8% Credit Spread 1% Market value of equity 15000 Market value of debt 2500 Marginal Tax Rate 30% Shares outstanding 1000

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