Calculate only FCFE & FCFF
Budget: ₹600 – ₹1,500 INR
Calculate only FCFE & FCFF for the company Heritage Foods according to the instructions below:
• Calculate FCFF and FCFE for each of the 5 years ending on 31/3/2022
• Calculate historical growth rate for FCFF & FCFE. High Growth Rate % can be calculated from historical FCFF/FCFE growth rates. You may also use logical/reasonable assumptions for high growth rate and stable growth rate of FCFF and FCFE.
• Use FCFFo & FCFEo and the growth rate respectively to forecast for the future FCFF and FCFE.
• Calculate the value of firm and value of Equity using two stage model; high growth period can be taken as 5 years .Also calculate Value per share
• Cost of equity can be calculated as mentioned above, WACC of 21-22 can be used a discounting rate for FCFF
• Stable growth rate is 3% and High growth rate is 6%.
Yahoo finance can be used
• Calculate FCFF and FCFE for each of the 5 years ending on 31/3/2022
• Calculate historical growth rate for FCFF & FCFE. High Growth Rate % can be calculated from historical FCFF/FCFE growth rates. You may also use logical/reasonable assumptions for high growth rate and stable growth rate of FCFF and FCFE.
• Use FCFFo & FCFEo and the growth rate respectively to forecast for the future FCFF and FCFE.
• Calculate the value of firm and value of Equity using two stage model; high growth period can be taken as 5 years .Also calculate Value per share
• Cost of equity can be calculated as mentioned above, WACC of 21-22 can be used a discounting rate for FCFF
• Stable growth rate is 3% and High growth rate is 6%.
Yahoo finance can be used