What is the mean value of the stock price

Assignment Help Corporate Finance

Reference no: EM132997801

The income statement and balance sheet below are actual results of a real company.

The company name and historical year have been concealed.

Forecast assumptions have been collected from conference call, analyst reports, and other sources

Tasks - (Pro-forma):

1. Based on the value driver assumptions provided, create pro-forma income statement and balance sheet (shaded area) for the forecast years. Use cash & equivalents and revolving credit as plugs. Relevant row(s) may be added as needed. Use the shaded area below the balance sheet to compute plugs. Please provide names of variables used to compute plugs in the relevant cells in column A.

2. Compute the FCFF (shaded area) based on the two approaches CFO and EBIT. Please provide names for individual variables used to compute FCFF in the relevant cells in column A.

3. Complete the valuation section (shaded area) similar to what we did for Costco during the residency. Please provide names for individual variables used to complete the valuation in the relevant cells in column A.

Note: you may not need to use all the rows specified in the above tasks.

4. What is the mean value of the stock price? Provide 95% confidence interval. What is the probability that stock price is higher than $60?

5. Would you buy the stock at the current price of $65? Why?

Attachment:- Balance sheet.rar

Reference no: EM132997801

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