Question: The simple model below applies these assumptions. Terminal Value 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Free Cash Flow 10.00 10.20

 The simple model below applies these assumptions. Terminal Value 2022 2023

The simple model below applies these assumptions. Terminal Value 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Free Cash Flow 10.00 10.20 10.40 10.61 10.82 11.04 11.26 11.49 11.72 11.95 174.14 283.64 Discount Factor 109% 130% 141% 154% 183% 199% 217% 258% 119% 8.59 168% 6.58 237% 5.05 Discounted Cash Flow 9.17 8.03 7.52 7.04 6.16 5.76 5.39 67.49 136.78) We have added the Total Free Cash Flow and Discounted Cash Flow in the rightmost column. The value of a company is the Discounted Cash Flow of all future Free Cash Flow Therefore, this company is valued to be $136 dollars in the current year. You are now going to develop forecasts for this company. f the Growth Rate was 5% and the Discount Rate was 12% what would be the value of the company (DCF)? f the Growth Rate was 0% and the Discount Rate was 6% what would be the value of the company (DCF)? The simple model below applies these assumptions. Terminal Value 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Free Cash Flow 10.00 10.20 10.40 10.61 10.82 11.04 11.26 11.49 11.72 11.95 174.14 283.64 Discount Factor 109% 130% 141% 154% 183% 199% 217% 258% 119% 8.59 168% 6.58 237% 5.05 Discounted Cash Flow 9.17 8.03 7.52 7.04 6.16 5.76 5.39 67.49 136.78) We have added the Total Free Cash Flow and Discounted Cash Flow in the rightmost column. The value of a company is the Discounted Cash Flow of all future Free Cash Flow Therefore, this company is valued to be $136 dollars in the current year. You are now going to develop forecasts for this company. f the Growth Rate was 5% and the Discount Rate was 12% what would be the value of the company (DCF)? f the Growth Rate was 0% and the Discount Rate was 6% what would be the value of the company (DCF)

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