**Dantzler Corporation Valuation Analysis**Dantzler Corporation is a fast-growing supplier of office products. Analysts anticipate the following free cash flows (FCFs) over the next three years, after which FCF is projected to grow steadily at an 8% annual rate. Dantzler's Weighted Average Cost of Capital (WACC) is 14%.**Free Cash Flow Overview**- **Year 0:** Initial - **Year 1:** $14 million- **Year 2:** $30 million- **Year 3:** $47 million**Analytic Tasks**Using the data collected in the provided Microsoft Excel Online file, perform the necessary analyses to address the following questions:1. **Horizon or Continuing Value:** - Calculate the value of all free cash flows that extend beyond Year 3, discounted back to the end of Year 3. - Round your answer to two decimal places and present it in millions. ![ ](0) **million**2. **Firm Valuation Today:** - Determine the present value of the firm, rounded to two decimal places. - Provide your answer in millions. ![ ](0) **million**3. **Current Price Per Share Estimation:** - Given Dantzler's $156 million in debt and 6 million shares of stock outstanding, estimate the current stock price per share. - Ensure your answer is fully expressed and rounded to two decimal places. ![ ](0) **dollars**To conduct your analysis, access the Excel spreadsheet linked below and follow the guided instructions:![Excel Icon](0) **Open spreadsheet****Note:** Ensure accuracy in intermediate calculations to avoid rounding errors in final results. # Corporate Valuation SpreadsheetThis spreadsheet outlines the process of corporate valuation using free cash flow (FCF) analysis. The data is presented in a tabular format with corresponding calculations.### Key Definitions- **FCF (Free Cash Flow)**: Cash generated by the company after accounting for capital expenditures, given in millions.- **Constant Growth Rate (gₙ)**: The expected rate at which FCF will grow indefinitely.- **WACC (Weighted Average Cost of Capital)**: The average rate of return a company is expected to pay its security holders to finance its assets.- **Market Value of Debt**: The total value of a company's debt.- **Common Shares Outstanding**: The total number of shares currently held by all shareholders.### Data and Calculations1. **Free Cash Flows (FCFs) in Millions:** - Year 1: -$14.00 - Year 2: $30.00 - Year 3: $47.002. **Constant Growth Rate (gₙ)**: 8.00%3. **Weighted Average Cost of Capital (WACC)**: 14.00%4. **Market Value of Debt**: $156.00 million5. **Common Shares Outstanding**: 6### Calculations- **Horizon Value**: Represents the value of cash flows beyond the forecast period.- **Total FCFs**: Cumulative value of projected free cash flows, including the horizon value.- **Present Value (PV) of FCFs**: The discounted value of future free cash flows to investors, applying WACC as the discount rate.- **Firm Value Today**: Calculated by summing the present values of projected FCFs and adjusting for debt.- **Market Value of Equity (MVₑ) and Price per Share (P₀)**: Determined by subtracting market value of debt from firm value and dividing by the number of shares.### Graphical Representations- **Bar Graphs**: - Represent the FCFs over the projected years (1 to 3) and horizon value for year 4. - PV of FCFs for the respective years is depicted in blue for investors' insight. ### Calculative Details- The formulas and specific calculations are not filled in (indicated as #N/A) in the `Formulas

Dollars/shares in millions FCF1 $ -14.00 FCF2 $ 30.00 FCF3 $ 47.00 Constant…

Answered: Dantzler Corporation is a fast-growing…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales = S0 $350 Last year's accounts payable $40 Sales growth rate = g 30% Last year's notes payable $50 Last year's total assets = A0* $320 Last year's accruals $30 Last year's profit margin = PM 5% Target payout ratio 60% Select the correct answer. a. $69.3 b. $72.7 c. $62.5 d. $65.9 e. $76.1
Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 7% rate. Dantzler's WACC is 13%. Year 0 1 2 3 ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ...... FCF ($ millions) - $8 $25 $41 What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two decimal places.$ million What is the firm's market value today? Assume that Dantzler has zero nonoperating assets. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two…
please answer without copy paste and with steps , explanation , computation, formula for each and every steps/numbers answer in text form
Answer the following question with complete solutions and cash flow diagram. An engineer launches a project in the country's top technohub. This involves rental of a computer unit for online class students. He felt that because of the density of students in the area, 90% of his 30-units will be occupied per sem (5 months each) per year. He desires a rate of return of 20%. Other pertinent data are the following: Office investment Computer investment per unit Cost of computers after 10 yrs |Office rental per month Computer rental per unit per month Annual maintenance budget per unit Business tax P 1,000,000 P 35,000 P 5,000 P 9,000 P 2,000 P 5,000 1% of Total Investment Insurance 0.5% of Total Investment Assess the project using (1) ROR, (2) Present Worth Method, and (3) Future Worth Method. (4) Estimate the payback period of this project.
Problem 1 Using Microsoft Excel, create an investment cash-flow diagram that will have a present worth of zero using MARR = 12%. The study period needs to be exactly 9 years and each year should have at least one unique cash-flow that is different from the cash-flows over the other years. Your answer should contain a table showing the cash-flows for each year and a graphical representation of the cash-flows (cash-flow diagram).
i need the answer quickly
someone solve this but not use excel
Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 7% rate. Dantzler's WACC is 14%. Year 0 1 2 3 FCF (S millions) - $17 $30 $50 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet a. What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. S million b. What is the firm's value today? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round your intermediate calculations. S million c. Suppose Dantzler has $92 million…
Can someone please help me to solve the following question showing all work and formulas neatly. And please show the cash flow diagram as well. PLEASE ANS THANK YOU!!!!!
You may attempt this question 2 more times for credit. A firm has invested $700 in a new machine that is expected to last for the next 4 years. The machine will be depreciated on a straight line basis down to zero by the end of its 4 year life. The firm projects that the machine will generate consecutive annual cash inflows of $700 beginning in one year and will generate consecutive annual cash outflows at 290 also beginning in one year.. Assuming the tax rate of 33%, determine the firm's cash flow next year. Place your answer to dollars and cents. Do not include a dollar sign or a comma in your answer.
Please help me to solve this problem
ne Internal rate of return For the project shown in the following table, , calculate the internal rate of return (IRR). Then indicate, for the project, the maximum cost of capital that the firm could have and still find the IRR acceptable. The project's IRR is %. (Round to two decimal places.) ts eText dia Librai Calculat Resaurce Emter vour amswer in the amswer box and then click Check Answer. ic Studiy Check Answer part memaiming Clear All Tiration Tiools > Ouestion 10 (0/1) Ouestion 11 (0/1). Question 12 (0/1) Question 9 (0/1) 5/1 Type Ihere to search insert

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