Company name: Past Past

Question Marks Year index -3 -2

Year 30-Jun-20 30-Jun-21

Q1 10 Prepare the projected income statement and balance sheet for the years 2024-2028 for your chosen co

Q2a 4 Revenue growth rate

Q2b 2 Revenue
tc, corporate tax rate
Q2c 1 Tangible, intangible and goodwill assets (carrying amount from balance sheet)
Q2d 1 Net operating working capital (from balance sheet)
Q2c 0.5 EBIT (from income statement)
Q2d 1 Income tax on EBIT
Q2e 0.5 Depreciation & amortisation expense (from income statement)
Q2f 3 Capital expenditure
Q2g 2 Change in NOWC
Q2h 4 Free cash flow to the firm (FCFF)

Q3a 2 rf (retrieve from online source (e.g., Bloomberg or Reuters website) to get 10 year government bond yi
Q3b 2 betaE (retrieve from Morningstar DatAnalysis Premium)
Q3c 2 MRP (retrieve from reputable online source such as Fernandez, Pablo et al (April 21, 2023), Available at
Q3d 2 rE (calculate based on CAPM)

Q4a 1 Debt (book value. Retrieve from balance sheet)

Q4b 1 rD draft estimate based on calculation of InterestExpenseOverYear0 / BookDebtOfYear-1
Q4c 1 rD draft estimate using alternative method such as traded corporate bond yields available from Reserv
Q4d 2 rD final estimate, used as an input into WACC after tax
Q4e 0.5 Equity (traded market value, retrieve from Morningstar DatAnalysis Premium)
Q4f 0.5 Equity (book value, retrieve from balance sheet)
Q4g 4 D / V final estimate. This debt-to-assets ratio will be used as input into WACC after tax. Calculate using
Q4h 1 WACC after tax. Calculate using corporate tax rate, rD final estimate, rE, D/V ratio, and other data state
Q4i 0.5 Please 'copy, paste special, value' the WACC after tax in the above cell to this question's yellow cell, an

Q5a 2 PV of FCFF for each year 1 to 5. Calculate using above data, ensure WACC after tax from Q4i is used.
Q5b 2 Long-run growth rate
Q5c 2 Terminal value as at year 5 based on perpetuity of year 5 FCFF growing at long-run growth rate forever
Q5d 2 PV of the terminal value
Q5e 2 Enterprise value
Q5f 0.5 Cash (retrieve from balance sheet)
Q5g 2 Equity value (DCF model estimated value. Calculate using above data)
Q5h 0.5 Units of all above cash flows. Retrieve from financial statements. For example, if in millions, then type 1
Q5i 0.5 Number of shares. Retrieve from online source or financial statements. Ensure consistent units with ite
Q5j 2 Share price in dollars per one share (DCF model estimated share price. Calculate based on above data)
Q5i 2 Share price in dollars per one share (traded market share price. Retrieve from online source at the sam
Q5k 2 NPV in dollars of buying one share assuming DCF model is correct and market price is not correct. Calcu

Q6 3 Find the WACC after tax that makes the market and DCF model-estimated share prices equal.
In other words, find the IRR.
Note that you will have to use Goal Seek to complete this. Using the IRR formula won't work properly s
When using Goal Seek, the 'by changing cell' should be your hard-coded WACC after tax from Q4i, not t
Once you've found your answer to this question using Goal Seek, copy this hard-coded 'WACC after tax
 overwrite Q4i's yellow cell back to its original hard-coded value that matches your answer in Q4h, using

Q7 3 Find the run-growth rate that makes the market and DCF model-estimated share prices equal.
Note that you will have to use Goal Seek to complete this.
Once you've found your answer to this question using Goal Seek, copy this hard-coded long-run growth
overwrite Q4i's yellow cell back to its original hard-coded value that matches your answer in Q4h, using

Q8 6 Conduct a 2-dimensional sensitity analysis of your estimated share price (based on Question 5's DCF m
and the year long-run growth rate (in the table's top row). Make the WACC numbers increase from sma
and make the growth rate numbers increase from smaller to bigger as they're listed from left to right.
Ensure that the table shows your base case share price bolded in the middle somewhere.

WACC after tax

Q9 20 Compare the estimated share price from your DCF model to the market share price and provide a reco
Your recommendation should be supported by arguments that discuss the differences between the esti
assumptions you have made in your DCF model and the risk analysis you performed in questions 6, 7 a
You should write your answer in the yellow text box below, and it should not be more than 300 words.

100

This cell should be C98. If it's not, you've inserted rows or columns and the auto-marking formulas w
 Past Past Forecast Forecast Forecast Forecast Forecast
-1 0 1 2 3 4 5
30-Jun-22 30-Jun-23 30-Jun-24 30-Jun-25 30-Jun-26 30-Jun-27 30-Jun-28

2024-2028 for your chosen company below row 98

0.3 0.3 0.3 0.3 0.3 0.3

10 year government bond yields)

(April 21, 2023), Available at SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4407839

kDebtOfYear-1
yields available from Reserve Bank of Australia, or whatever you think sensible

CC after tax. Calculate using the above debt book value and equity market value.
/V ratio, and other data stated above u Do not use this WACC after tax in any calculations.
his question's yellow cell, and base a Use this WACC after tax in all below calculations.

after tax from Q4i is used.

ong-run growth rate forever. Calculate using above data.

ple, if in millions, then type 1,000,000.

sure consistent units with items above. For example, if the number of shares is 700 million, but your cash flows above are all in million
culate based on above data)
om online source at the same recent data that the number of shares and market capitalisation of equity were found above)
ket price is not correct. Calculate based on above data

share prices equal.

rmula won't work properly since the WACC in the terminal value will not be adjusted properly.
ACC after tax from Q4i, not the formula from Q4h.
hard-coded 'WACC after tax' from Q4i into the yellow cell provided in this question, then
hes your answer in Q4h, using 'copy and paste by value'.

d share prices equal.

hard-coded long-run growth rate from Q5b into the yellow cell provided in this question, then
hes your answer in Q4h, using 'copy and paste by value'.

based on Question 5's DCF model) by varying the WACC after tax (in the table's left column)
C numbers increase from smaller to bigger as they're written from top to bottom,
y're listed from left to right.
dle somewhere.
Long-run growth rate

are price and provide a recommendation to buy, hold or sell your chosen company's shares, clearly stating why.
differences between the estimated share price from your DCF model and the market price with regard to the
erformed in questions 6, 7 and 8 above.
ot be more than 300 words.

he auto-marking formulas will not work which will result in a mark of zero. Start again by re-downloading this

% Sales 2023 2024 2025 2026 2027 2028

 cash flows above are all in millions, then your number of shares here should be 700.

uity were found above)

This column 'N' is for marking formulas only. Please don't enter calculations into this column or move it since it may risk scoring zero.
This column 'N' is fo
 Note for students: This cell should be N98. If it's not, you've inserted rows or columns and the auto-marking formulas w
oring zero.
This column 'N' is for marking formulas only. Please don't enter calculations into this column or move it since it may risk scoring zero.
uto-marking formulas will not work which will result in a mark of zero. Start again by re-downloading this spreadsheet and refill you
preadsheet and refill your answers carefully.