User Account

All Pages

Enterprise value of fauji fertilizer ltd

Assignment Help Finance Basics
Reference no: EM132630599

Fauji Fertilizer Corporation expects to generate following free cashflows in coming 5 years.

Year 1 2 3 4 5

FCF (Rs. Million) 51 70 77 72 80

After this time period, the free cashflows will grow constantly at 3% per year. The firm's cost of capital is 13%. Using the discounted free cashflow model, calculate the following.

a. What is the enterprise value of Fauji Fertilizer Ltd?

b. If Fauji Fertilizer have access cash of Rs. 32 million, debt of Rs. 280 million, and the 40 million shares outstanding and trading in the market, what should be the expected share price of Fauji Fertilizer?

c. Suppose that the stocks of Fauji Fertilizer are being sold in the market at Rs. 12 per share. Will you buy that stock? why or why not?

Reference no: EM132630599

Questions Cloud

Describe each type of law identified in juriglobe site : Describe each type of law identified in the JuriGlobe site. Evaluate how the court process in these countries differs from that of the United States.
Explain the cash realization cycle : Explain the cash realization cycle. What role does inventory turnover and receivable collection play in the realization of cash for a business?
Calculate the debt-to-asset ratio : Mr. Joseph has identified five different companies in which he is interested in investing, Calculate the debt-to-asset ratio
What is the three-day growth factor : What is the three-day growth (or decline) factor? Be sure to type in what calculation you did in the textbox in order to earn full credit.
Enterprise value of fauji fertilizer ltd : a. What is the enterprise value of Fauji Fertilizer Ltd?
Media coverage of political issue involving congressmen : Choose an example of the media's coverage of a political issue involving Congressmen or the executive/presidential branch,
Analyze legal and ethical implications of counseling clients : Apply documentation skills to examine family therapy sessions. Analyze legal and ethical implications of counseling clients with psychiatric disorders.
Brief summary of the theory and progression in the field : Brief summary of the theory and progression in the field - Study limitations and future research direction proposed in the four articles
Determining the dividend yield on stock : Today, you sold the stock and realized a total return of 25%. Your capital gain was $6 a share. What was your dividend yield on this stock?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd