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%.Year0123........................................................FCF ($ millions)....................................................... - $9$19$49The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet 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 millionWhat 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 millionSuppose Dantzler has $117 million of debt and 12 million shares of stock outstanding. What is your estimate of the current price per share? Round your answer to two decimal places. Write out your answer completely. For example, 0.00025 million should be entered as 250.$ fill in the blank 4 File1235G7<>Assignments - you...template - Saved ✓Home InsertACorporate valuation4 FCF15FCF2FCF3ArialDollars/shares in millions67 Constant growth rate, gnWACCMarket value of debtFormulas8910 Common shares outstanding111213 FCFS14 Horizon value15 Total FCFs1617 PV of FCFs to investors1819 Firm value today2021 Market value of equity, MV Equity22 Price per share, Po23242526 FCFS27 Horizon value28 Total FCFs2930 PV of FCFs to investors3132 Firm value today33<DrawWorkbook StatisticsfxSheet1 +Mind Tap - Cengage...Page LayoutVB10-$9.00$19.00$49.005.00%13.00%$117.001200#N/ACMind Tap - Cengage...FormulasB1-$9.001-$9.00#N/A#N/ADataDReviewVSearch for tools, help, and more (Option + Q)2$19.002$19.00#N/AView#N/AExcel Online Studen...EHelpng.cengage.comab→General3$49.003$49.00#N/A#N/A#N/AExcel Online Studen...F44#N/AV←0.00.00→.0HExcel Online Studen...JSTNTTb Success Confirmati...KΣ✓ APVMEditing ✓C https://www.chegg....NGive Feedback to Microsoft+CommentsOTP100% + File5F47<>Assignments - you...template - Saved ✓Home Insert14 TYDSUIT YSTE15 Total FCFsAArial1617 PV of FCFs to investorsFormulasDraw1819 Firm value today2021 Market value of equity, MV Equity22 Price per share, Po23242526 FCFS27 Horizon value28 Total FCFs2930 PV of FCFs to investors3132 Firm value today3334 Market value of equity, MV Equity35 Price per share, Po363738394041424344454647<Workbook StatisticsfxSheet1 +MindTap - Cengage...Page LayoutVB100#N/A#N/A#N/ACMind Tap - Cengage...FormulasB1-$9.00#N/A#N/ADataDReviewVSearch for tools, help, and more (Option + Q)2$19.00#N/A#N/AExcel Online Studen...ViewEHelpng.cengage.comab→General3$49.00#N/A#N/A#N/AExcel Online Studen...F4#N/AGv←0.00.00→.0HExcel Online Studen...JSTNTb Success Confirmati...KΣ✓ ATVMEditing ✓C https://www.chegg....NGive Feedback to Microsoft+CommentsOTP100% +

The worthiness of a company based on future constant cash flows for an indefinite period occurring…

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) ....... ....... ....... ....... ....... ....... ....... ...... - $9 $19 $49 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. Open spreadsheet 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 million 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 million Suppose Dantzler has $117 million of debt and 12 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 4

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