Excel Online Structured Activity: Corporate valuation 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 5% rate. Dantzler's WACC is 13%. Year 0 1 2 3 ....... ....... ....... ....... ....... ....... ....... ....... FCF ($ millions) ....... ....... ....... ....... ....... ....... ....... ......   - $15 $31 $38 The data has been collected in the Microsoft Excel Online file below. Open the

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Excel Online Structured Activity: Corporate valuation

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 5% rate. Dantzler's WACC is 13%.

Year 0 1 2 3
....... ....... ....... ....... ....... ....... ....... .......
FCF ($ millions) ....... ....... ....... ....... ....... ....... ....... ......
  - $15 $31 $38

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.

 

 

  1. 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.

    $  fill in the blank ________.

  2. 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.

    $  fill in the blank ________.

  3. Suppose Dantzler has $181 million of debt and 7 million shares of stock outstanding. What is your estimate of the current price per share? Round your answer to two decimal places. Write out your answer completely. For example, 0.00025 million should be entered as 250.

    $  fill in the blank _________.

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Transcribed Image Text:aboot blank Excel template - Saved - Sewch A- Insert Drass Page Layout O Vitimg v Formlas Data View hep Arial 10 A- Curency G13 A Corporate valuation Doliars/harers io milions 4 FOP. FOR S416.00 $31 00 $33 00 Constart growih ate - 6.00% WACC 13 00% $181 CO Lieket vanae ad (het Commun shares outsiandan 2. $15 00 $31 CO Tocal FCF SngeA UOIZNOMH 17 PvofFsbemesiors Fom velue taday Aepa onga ui Market vailue of eouy u Price per share, P, 24 Formulas 2. $31 00 25 $15.00 Horizon vala Youal CFs SLOUSN CIPM Firm value today
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