Calculate free cash flows to equity

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Question 1: Calculate free cash flows to equity, abnormal earnings, and abnormal earnings growth for the years 2014-2016.

Question 2: Assume that in 2017 Hugo Boss AG liquidates all its assets at their book values, uses the proceeds to pay off debt and pays out the remainder to its equity holders. What does thisassumption imply about the company's:

Question 3: Free cash flow to equity holders in 2017 and beyond?

Question 4: Abnormal earnings in 2017 and beyond?

Question 5: Abnormal earnings growth in 2017 and beyond?

Question 6: Estimate the value of Hugo Boss's equity on April 1, 2014 using the above forecasts andassumptions. Check that the discounted cash flow model, the abnormal earnings model and the abnormal earnings growth model yield the same outcome.

Reference no: EM132466914

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