KELOMPOK 7 Accounting & Finance

Anna Julianna 21/484038/NEK/25529

Ilmi Ariyundhani 21/475949/NEK/25474
Riska Wegig Pratitis 21/484504/NEK/25569
Rizal Zein Zulkarnaen 21/475656/NEK/25457

10-14 NONCONSTANT GROWTH

D3 = 1.00
D4 = D3*1.50 = 1.00*1.50 = 1.50
D5 = D4*1.50 = 1.50*1.50 = 2.25
D6 = 2.25*1.08 = 2.43
g = 8%
r = 15%
P5 = 2.43 / 0.15-0.08 = 2.43 / 0.07 = 34.71

Discount and Price Dividend Price PV

D3 3 1,00 $ 0,657516
D4 4 1,50 $ 0,857630
D5 5 2,25 $ 1,118648
P5 5 34,71 $ 17,25700
$ 19,89080
So, value of the stock today is $ 19,89

10-15 CORPORATE VALUATION

𝑡𝑒𝑟𝑚𝑖𝑛𝑎𝑙 𝑣𝑎𝑙𝑢𝑒 = 𝑓𝑟𝑒𝑒 𝑐𝑎𝑠ℎ 𝑖𝑛 𝑦𝑒𝑎𝑟 𝑡ℎ𝑟𝑒𝑒 ∗ (1 + 𝑔)/𝑟 − 𝑔
free cash flow in year three is $40 million
𝑔 = 7%
𝑟 = 13%
1+7%
a. Horizon terminal value = 40 = $ 𝟕𝟏𝟑. 𝟑𝟑 𝒎𝒊𝒍𝒍𝒊𝒐𝒏
13%−7%

b. Present of the company

= −$20/(1 + 13%) + $30/(1 + 13%)^2 + $40/(1 + 13%)^3 + $713.33/(1 + 13%)^3
= $ 𝟓𝟐𝟕. 𝟖𝟗 𝒎𝒊𝒍𝒍𝒊𝒐𝒏
c. The company's value of equity
= 𝑝𝑟𝑒𝑠𝑒𝑛𝑡 𝑤𝑜𝑟𝑡ℎ − 𝑑𝑒𝑏𝑡
= 527.89 − 100
= 427.89 𝑚𝑖𝑙𝑙𝑖𝑜𝑛
share price = value of equity/number of shares
= 427.89/10
= $𝟒𝟐. 𝟕𝟗