Please solve parts A, B, AND C! **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 Weighted Average Cost of Capital (WACC) is 13%.### Cash Flow Projection:- **Year 0**: No cash flow- **Year 1**: -$15 million- **Year 2**: $22 million- **Year 3**: $53 millionThe data has been collected in the Microsoft Excel Online file provided. Open the spreadsheet and perform the required analysis to answer the questions below.[Open Spreadsheet]### Analysis Questions:**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.**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.**c. Suppose Dantzler has $86 million of debt and 10 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.

Given information : Tenure for cash flows = 3 years Sustainable growth rate = 5% WACC =13% Free cash…

Answered: Please solve parts A, B, AND C!

Business

Finance

Please solve parts A, B, AND C!

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 18P: Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts...

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Please solve parts A, B, AND C!

**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 Weighted Average Cost of Capital (WACC) is 13%.

### Cash Flow Projection:
- **Year 0**: No cash flow
- **Year 1**: -$15 million
- **Year 2**: $22 million
- **Year 3**: $53 million

The data has been collected in the Microsoft Excel Online file provided. Open the spreadsheet and perform the required analysis to answer the questions below.

[Open Spreadsheet]

### Analysis Questions:

**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.

**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.

**c. Suppose Dantzler has $86 million of debt and 10 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.

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