Question: Please do by hand if you can, excel does not help me Finding Share price for TGI with uneven growth in FCF: 3-Stage Model Version

Please do by hand if you can, excel does not help me

Please do by hand if you can, excel does not help me

Finding Share price for TGI with uneven growth in FCF: 3-Stage Model Version II In-Class Exercise A financial analyst from Raymond James made the following forecast for Hi-tech Firm TGI between 2013-2015(in millions of dollars) at the end of 2012 Cash Flows From Operating Activities: 2015 $400$480 $520 $120 $150 $210 $230 $90 $105 2013 2014 Net Income Depreciation and amortization Increase in inventories $100 $200 $80 in accounts receivable Cash Flows From Invesing Activities: 2013 $230 S50 2014 $240$265 Capital Expenditures: property, plant and equipment (PP&E) M&A: Purchase of Other Business S65 $80 Raymond James expects a constant growth of 8% in Cash flow from operations after 2015 However, Raymond James is expecting uneven above-average growth in cash flows from Investing activities. Specifically, TGI is expected to have an initial six-year period of 1 2% per year growth after 2015. Analysts anticipates that TGI will increase its cash flows from investing activities 4% per year as a mature company, and allows 8 years for the transition to the mature growth period. Please calculate the value per share at the end of 2012 if TGI reported $4,400 in short-term and long-term debt and 400 million shares outstanding at the end of 201 2 . (WACC= 10%)

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