daimler - growth rate in the economy in which the firm...

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FCFF Stable Model Page FCFF STABLE GROWTH MODEL This model is designed to value a stable firm on the basis of free cashflows to firm. Please enter inputs to the model: Current EBIT $9,324.00 (in currency) Current tax rate = 46.94% Current Return on Capital = 7.15% $18,068.00 Market Value of Equity = $62,392.00 Market Value of Debt = $64,488.00 Beta of the stock = 0.945 Riskfree rate = 4.87% (in percent) Risk Premium= 4.00% (in percent) Enter the cost of debt = 5.07% This is a pre-tax cost of borrowing. Expected Growth Rate = 3% (in percent) The expected growth rate for a stable firm cannot be significantly higher than the nominal
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Unformatted text preview: growth rate in the economy in which the firm operates. It can be lower. This is the output from the Model Firm Details: from inputs on prior page EBIT (1- tax rate) = $5,095.73 - Reinvestment = $2,139.21 41.98% Free Cashflow to Firm = $2,956.53 Cost of Equity = 8.65% Cost of Debt = 2.69% Debt Ratio = 50.83% Cost of Capital = 5.62% Expected Growth rate = 3.00% Value of Operating Assets = $112,847.22 Value of Cash and Marketable Securities = $18,068.00 Value of Firm $130,915.22 - Value of Debt = $64,488.00 Value of Equity $66,427.22 Number of shares outstanding = 913.295 Value per share = $72.73...
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This note was uploaded on 01/29/2012 for the course FIN 6000 taught by Professor Banko during the Fall '11 term at University of Florida.

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