Hey! I have included two files you will need. The first titled TBBC is part 2 of the project. The second file is an example of our lecture 8. Starting from your Excel file from part 2 of the project,...

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Hey! I have included two files you will need. The first titled TBBC is part 2 of the project. The second file is an example of our lecture 8.
  • Starting from your Excel file from part 2 of the project, add another worksheet for Discounted Cash Flow (DCF) valuation. Similar to our lecture 8, you will calculate free cash flow to the firm for the next five years and the terminal value of the firm at the end of the fifth year. Then you will discount these cash flows to present and find out the business enterprise value as well as the equity value per share. Finally, based on your valuation, make investment advice for this stock.
    • To discount the cash flows, the discount rate will be the weighted average cost of capital. For simplicity, you don't have to estimate the WACC yourself. You can use the industry average cost of capital from this database (http://people.stern.nyu.edu/adamodar/New_Home_Page/datafile/wacc.htm)Links to an external site.). (No need to use the build-up method from lecture)
    • You need to also explain the steps and the assumptions so someone out of our class can understand. Please write on the DCF worksheet below the calculations. Don't create another worksheet.
Thank you!
Answered 6 days AfterMay 07, 2021

Solution

Shakeel answered on May 13 2021
26 Votes

Financial Analysis
The Boston Beer Company Inc.
Income Statement for the Years
2018 through 2020
(FYE February...

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