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Problem Set Week 4 Blank Template
Problem Set Week 4 Blank Template
Discount Years
Discount Factor
Discounted Cash Flows
Enterprise Value
Net Debt 1,700
Financial Investments 2,750
Equity Value
Number of Shares 650
Value per share
Market Price 37
% Price Potential
Investment Decision
ASSUMPTIONS FOR CASH FLOW ESTIMATION 2020 2021E 2022E 2023E 2024E 2025E
Effective Tax rate 30.0%
EBIT Margin 8.0% 8.3% 8.5% 8.8% 9.0% 9.3%
Depreciations&Provisions/Sales 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Net Capex / Sales 6.5% 6.2% 5.8% 5.5% 5.1%
Chg. W.Capital: % Chg. Sales 9.0%
SOLUTIONS
TV WACC Calculation 1a Capex
Assumption Value
Risk-free (10-year Treasury) 2.0%
Equity Beta 1.35
Equity risk premium 6.0%
Debt spread 3.0%
Tax rate 30.0%
Cost of Equity 1b Year
Cost of Debt FCF
Debt/(Debt+Equity) 25%
WACC 2a Wacc
Growth Rate
2b Terminal Value
2c Enterprise Value
2d Equity Value
2e Investment Decision
Trend Change
0.25%
-0.35%
Company A B
Required rate of return (k) 8% 8%
DPS Expected nominal growth rate (g) 2.0% 4.5%
DPS 2021 0.40 0.25
EPS 2021 1.10 1.05
1) DPS 2022
k-g
PE 2021
2) PEG 2021