Question: Please Help. I need the dollar price per share, so must calculate the dollar value of the equity and then divide by the number of
Please Help.
I need the dollar price per share, so must calculate the dollar value of the equity and then divide by the number of shares outstanding. Also, run sensitivities on the price per share using the shown discount and growth rates. Finally, comments on the impact of discount and growth rates on the price per share.
Q(P,S) is the demand function
P = a vector of all relevant prices
p = the goods own-price.
q = equals the quantity demanded of the good
S = a vector of all relevant shift variables other than prices (real income, demographic characteristics etc.)

@ Q- Search in Sh H on E 4 Y= 2 4 95% Home Layout Tables Charts SmartArt Formulas Data Review Edit Font Alignment 2 . Fill Times New Roman - 12 A- A = = = abc Wrap Text Paste Clear B 1 U do - A - EEEE Merge - Number Format Cells Normal 1 , General $ % , o. DESI Conditional Formatting Bad Insert Delete E Actual 2019 5,000 3,075 D Projected 2020 2021 T. 1,550 2022 Notes Increase at average growth rate Increase at average growth rate Insert formula Increase at average growth rate Insert formula Hold flat Insert formula Use actual 2019 tax rate Insert formula DJK Free Cash Flow Valuation 2020 2021 2022 Notes EBIT minus Taxes minus increase in Working Cap. See row 35 minus increase in Other Assets From Pro Formas Free Cash Flow Calculation Terminal Value of 1990 Use terminal value formula and 2022 growth rate Present Value Calculation PV of Free Cash Flows@12% Calculation + Cash Cash + Bank Loan (if negative) - Existing Debt LTDCPLTD -PV of Jasper FCF Insert formula Price per share Insert formula 100 (all figures in KS) Income Statement Net Sales - Cost of Goods Sold -Gross Profit - S,G & A Expenses -EBIT - Interest -EBT 0 - Taxes 1 - Net Income 2 Key Assumptions: 3 Average growth rate 4 Tax Rate 5 Discount rate 6 # of shares outstanding (K) 7 Balance Sheet 8 Cash 9 Notes and Acc. Rec. 0 Inventory 1 Prepaid 2 Current Assets 3 Other 4 Total Assets 104 0% 5% 4% Given Hold at 2019 tax rate 21% 8% 250 Sensitivities LT Growth Rate 3.0% 4.0% 5.0% 88 1,600 1,500 Disc. Rate 8.0% 9.0% 10.0% Increase at average growth rate for all accounts 62 1.250 Insert formula Increase at average growth rate Insert formula 250 500 SO 450 6 Bank Loan 7 Payables 8 CPLTD 9 Other 0 Current Liabilities 1 LTD 2 Equity 3 Total Liabilities & Equity Plug to make balance sheet balance Increase at average growth rate Hold flat Increase at average growth rate Insert formula Falls yearly by S50,000 Equity of previous year plus Net Income Insert formula 1,000 2.250 5 Working Capital Insert formula @ Q- Search in Sh H on E 4 Y= 2 4 95% Home Layout Tables Charts SmartArt Formulas Data Review Edit Font Alignment 2 . Fill Times New Roman - 12 A- A = = = abc Wrap Text Paste Clear B 1 U do - A - EEEE Merge - Number Format Cells Normal 1 , General $ % , o. DESI Conditional Formatting Bad Insert Delete E Actual 2019 5,000 3,075 D Projected 2020 2021 T. 1,550 2022 Notes Increase at average growth rate Increase at average growth rate Insert formula Increase at average growth rate Insert formula Hold flat Insert formula Use actual 2019 tax rate Insert formula DJK Free Cash Flow Valuation 2020 2021 2022 Notes EBIT minus Taxes minus increase in Working Cap. See row 35 minus increase in Other Assets From Pro Formas Free Cash Flow Calculation Terminal Value of 1990 Use terminal value formula and 2022 growth rate Present Value Calculation PV of Free Cash Flows@12% Calculation + Cash Cash + Bank Loan (if negative) - Existing Debt LTDCPLTD -PV of Jasper FCF Insert formula Price per share Insert formula 100 (all figures in KS) Income Statement Net Sales - Cost of Goods Sold -Gross Profit - S,G & A Expenses -EBIT - Interest -EBT 0 - Taxes 1 - Net Income 2 Key Assumptions: 3 Average growth rate 4 Tax Rate 5 Discount rate 6 # of shares outstanding (K) 7 Balance Sheet 8 Cash 9 Notes and Acc. Rec. 0 Inventory 1 Prepaid 2 Current Assets 3 Other 4 Total Assets 104 0% 5% 4% Given Hold at 2019 tax rate 21% 8% 250 Sensitivities LT Growth Rate 3.0% 4.0% 5.0% 88 1,600 1,500 Disc. Rate 8.0% 9.0% 10.0% Increase at average growth rate for all accounts 62 1.250 Insert formula Increase at average growth rate Insert formula 250 500 SO 450 6 Bank Loan 7 Payables 8 CPLTD 9 Other 0 Current Liabilities 1 LTD 2 Equity 3 Total Liabilities & Equity Plug to make balance sheet balance Increase at average growth rate Hold flat Increase at average growth rate Insert formula Falls yearly by S50,000 Equity of previous year plus Net Income Insert formula 1,000 2.250 5 Working Capital Insert formula
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