Question: PLEASE PLEASE ANSWER THIS AS SOON AS POSSIBLE, it is very IMPORTANT. Problem 5: (20pts) The last 5 years' results of Niccair Corporation are given
Problem 5: (20pts) The last 5 years' results of Niccair Corporation are given below. Value the company's stock based on a FCFF model. This means you will need to use the values below to estimate the future growth of Niccair's free cash flows to the firm, then discount those cash flows back to the present using the formula to value a growing perpetutity. You may assume your estimate of Niccair's growth rate remains constant throughout the life of the firm. You will also need to estimate the WACC for Niccair in order to discount your cash flows. Consider that Niccair's 2015 year-end debt is $750MM. Niccair's 2015 year-end cash is \$50MM. The company has a cost of debt of 5%. The company has 44,080,000 shares outstanding. The year-end share price is $37. Niccair's beta is 2 , the risk-free rate is 3%, the expected return on the market is 12%. PLEASE ANSWER QUESTION FULLY AND GIVE THE RIGHT RESPONSE MY WHOLE CLASS DEPENDS ON IT (Answer all parts please)
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