Your company has recently released its financial results for the previous financial year. It is anticipated...

 

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Your company has recently released its financial results for the previous financial year. It is anticipated that the company will experience a growth of 20% over the next 4 years and thereafter the growth rate will decline to 4% for the foreseeable future. Therefore, terminal value should also be taken into consideration when performing valuation. Assume the following: • TRF = 5.6%; RPM = 6%; b = 1.2 • Debt: Price of the bond = R1,153.72; no of bonds = 70,000 bonds Preferred shares: Price = R116.95; no of shares = 200,000 shares Use an existing company's financials in answering this question. All assumptions must be supported. Answer should be in a form of a report not exceeding 10 pages. Your company has recently released its financial results for the previous financial year. It is anticipated that the company will experience a growth of 20% over the next 4 years and thereafter the growth rate will decline to 4% for the foreseeable future. Therefore, terminal value should also be taken into consideration when performing valuation. Assume the following: • TRF = 5.6%; RPM = 6%; b = 1.2 • Debt: Price of the bond = R1,153.72; no of bonds = 70,000 bonds Preferred shares: Price = R116.95; no of shares = 200,000 shares Use an existing company's financials in answering this question. All assumptions must be supported. Answer should be in a form of a report not exceeding 10 pages.

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