Prepare free cash flow projections

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Reference no: EM13676649

PNG Airlines is positioning itself for global expansion. The Chief Executive Officer of the company has asked its Chief Financial Officer to prepare a valuation report based on free cash flow (FCF) projections. The CFO needs your expertise in this matter. The Excel file has PNG's financial statements for the last 5 years. This file also provides you with certain valuation assumptions that you would need. Using discounted PV method, you are required to:

(1) Prepare free cash flow (FCF) projections for the next 10 years.

(2) Determine PNG's terminal value at the end of 10th year.

(3) Based on discounted free cash flows, determine enterprise value, equity value and value per share.

(4) Write an 5-7 pages long report covering airline industry trends, PNG's financial strengths, PNG's valuation potential and suggestions for value enhancement, if any. (NOTE: You may use annual reports of airlines in America to prepare the background information assuming that the qualitative information pertains to PNG airlines)

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It contains Two Separate files, MS Excel file having solution for first three questions in separate tabs and MS word document having a report in 4 Pages, and 1489 Words count.

Reference no: EM13676649

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