Question: Need help asap please! Nabor Industries is considering going public but is unsure of a fair offering price for the company. Before hiring an investment

Nabor Industries is considering going public but is unsure of a fair offering price for the company. Before hiring an investment banker to assist in making the publie offering, managers at Nabor have decided to make their own estimate of the firm's common stock value. The firm's CFO has gathered data for performing the valuatie using the free cash flow valuation model. The firm's weighted average cost of capital is 11%, and it has $1,500,000 of debt and $400,000 of preferred stock in terms market value. The estimated free cash flows over the next five years, 2020 through 2024, are given. Beyond 2024 to infinity, the firm expects its free cash flow to grow by 3% annually Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy paste a formula acron a row or down a column, an absolute cell reference ara mited cell reference may be preferred. We specific Excel function is to be used the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found, Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data on your formular, umally the Given Data section Year(t) 2020 2021 2022 2023 2024 Free Cash Flow (FCT) $200,000 $250,000 $310.000 $350.000 $120.000 To Do .. Estimate the value of Nabor Industries' entire company by using the free cash flow Valuation model. 'b. Use your finding in parte along with the data provided previously to find Naber Industries common stock value e. If the firm plans to ime 200,000 shares of common stock, what is its estimated Value per shure? Solution imate the value of Nabor Industries' entire company by using the tree cash flow valuation model Rate of return Growth rate after 2024 12 Piete 26 27 21 23 Year Sum of discounted Stock value at the end of 2024 PV of future stock value Current value of Naber Industries WESTE Current value of Naber Industries b. Use your finding in part a slong with the data provided previously to find Nabor Industries' common stock value Debt Preferred Stock Common stock valac 1,500,000 400,000 c. If the firm plans to issue 200,000 shares of common stock, what is its estimated value per share? Number of shares Estimated valge per share 200,000 Points 1 1 Requirements 1 In cell D25, by using cell references and the function NPV, calculate the sum of discounted cash flows for 2020-2024 2 In cell D26, by using cell references, calculate the value of the stock at the end of 2024. 3 In cell D27, by using sell references and the function PV, calculate the present value of the future stock value Note: The output of the expression or function you typed in this cell is expected as a positive number 4 In cell D28, by using cell references, calculate the current total value of Nabor Industries Note: Refer to the values from Steps 1 and 3 in your calculations $ In cell 34, by using cell references, calculate the Nabor Industries common stock value Note: Refer to the current value of Nabor Industries from Step 4 in your calculations 6 In cell D39, by using cell references, calculate the firm's estimated value per share 7 Save the workbook. Close the workbook and then exit Excel Submit the workbook as directed 1 1 06 SERN
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