Valuation Of An MNC’s Cash Flows Over Multiple

Periods

Year E(CF)_D E(CF)_C1 E(S)_C1 E(CF)_C2 E(S)_C2 E(CF)_C3 E(S)_C3

1 PKR 3,925.00 $3,132.00 5.938 INR 2,333.00 3.989 £1,091.00 8.6
2 PKR 3,024.00 $4,389.00 5.413 INR 2,967.00 3.658 £1,369.00 8.049
3 PKR 4,916.00 $3,042.00 5.012 INR 1,316.00 3.004 £1,897.00 8.648
4 PKR 4,072.00 $4,482.00 5.689 INR 1,162.00 3.951 £2,718.00 8.131
5 PKR 3,228.00 $3,817.00 5.7 INR 2,464.00 3.262 £2,922.00 8.55

Cash Flows
First year

E(CF$,1)= E(CF0,1) + E(CFc1,1) E(Sc1,1) + E(CFc2,1) E(Sc2,1) + E(CFc3,1) E(Sc3,1)

E(CF$,1)=3925+(3132*5.938)+(2333*3.989)+(1091*8.6)
E(CF$,1)= PKR 41,211.75

Second Year
E(CF$.2)= E(CF0,2) + E(CFc1,2) E(Sc1,2) + E(CFc2,2) E(Sc2,2) + E(CFc3,2) E(Sc3,2)
E(CF$.2)=3024+(4389*5.413)+(2967*3.658)+(1369*8.049)
E(CF$.2)= PKR 48,654.02

Third Year
E(CF$.3)= E(CF0,3) + E(CFc1,3) E(Sc1,3) + E(CFc2,3) E(Sc2,3) + E(CFc3,3) E(Sc3,3)
E(CF$.3)=4916+(3042*5.012)+(1316*3.004)+(1897*8.648)
E(CF$.3)= PKR 40,521.02

Fourth Year
E(CF$.4)= E(CF0,4) + E(CFc1,4) E(Sc1,4) + E(CFc2,4) E(Sc2,4) + E(CFc3,4) E(Sc3,4)
E(CF$.4)= 4072+(4482*5.689)+(1162*3.951)+(2718*8.131)
E(CF$.4)= PKR 56,261.22

Fifth Year
E(CF$.5)= E(CF0,5) + E(CFc1,5) E(Sc1,5) + E(CFc2,5) E(Sc2,5) + E(CFc3,5) E(Sc3,5)
E(CF$.5)= 3228+(3817*5.7)+(2464*3.262)+(2922*8.55)
E(CF$.5)= PKR 58,005.57
 Name: Salman Sultan
Roll No: 21-BBA-22
S.No: 17

k or E(R) Cash Flow (1+K)^t MNC Value

13.70% PKR 41,211.75 1.13701 PKR 36,245.73
13.44% PKR 48,654.02 1.2868406721 PKR 37,808.90
13.17% PKR 40,521.02 1.44922688877 PKR 27,960.44
13.93% PKR 56,261.22 1.68451991223 PKR 33,398.96
13.26% PKR 58,005.57 1.86405823032 PKR 31,117.89
Total Value Of MNC= PKR 166,531.92

Value of the Firm

First year Second year

E(CF$,1) E(CF$,2)
V= V=
(1+K)^1 (1+K)^2

### ###
V= V=
1.13701 1.2868406721
2) E(Sc3,2)
V= ### V= ###
Thirdyear Fourth year
E(CF$,3) E(CF$,4)
V= V=
(1+K)^3 (1+K)^4
3) E(Sc3,3)
### ###
V= V=
1.4492268888 1.68451991223

V= ### V= ###
Fifth year
E(CF$,5) Total Value Of MNC=
V=
(1+K)^5

###
V=
1.8640582303 PKR 166,531.92
 PKR 166,531.92
V= ###