Business
Business, 21.10.2020 16:01, zaanebali

Business Valuation - Individual Assignment - The ABC CompanyBELOW IS THE ANSWER PROVIDED BY CHEGG BEFORE , PLEASE, SHOW THE FORMULAS IN THE EXCEL. THANK YOUUsing the information on the ABC Company in the table above to answer the questions below: (whenever possible either show your work or show how you set up the problem)1. For the five-year historical and the five-year forecast period, calculate:a. The annual growth rate for revenue, net income, and free cash flow. b. The average annual growth rate for the revenue, net income, and free cash flow. c. The compounded annual growth rate for revenue, net income, and free cash flowd. Assuming a cost of capital of 11% calculate the present value of the free cash flow for the forecast period. e. Assuming a cost of capital of 11% and a growth rate of 4% calculate the horizon value as of 2022.f. Using the discounted cash flow method and a cost of capital of 11% what is the value of the company?2. The table below provides a list of comparable companies to the ABC Company. Use the information in the table to answer the questions below. a. Identify which companies you would use as comparable companies to determine the value of the ABC Company. Explain your criteria for selecting the companies you chose. b. Determine the range, median, and average of the three market value ratios for the complete list of ten companies. c. Determine the range, median, and average of the three market value ratios for the list of comparable companies you recommend in question 2a above. d. Calculate, if possible, the value of ABC Company using first the P/E ratio, second the price to revenue ratio, and third the price to book ratio. Use the ratios from the comparable companies identified in question 2a above. Do not consider the DCF analysis in #1 above For each value explain how you determined the value. e. Take the values you determined in question 2e above and reconcile them to come up with a value of ABC Company using the market value ratios. Explain how you determined the value. ABC Company: Comparable Public Companies

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