如何确定分子是FCFE0还是FCFE1？

问题如下：

Using Norman’s suggested valuation methodology, estimates, and the data in Exhibit 2, Laboutin’s intrinsic value per share (in CDN$) is closest to:

选项：

A.$181.00 B.$155.00 C.$171.00

解释：

Solution

A is correct. Norman suggests using FCFE and a required return on equity of 10% to value Laboutin. Using Exhibit 2 to calculate FCFE:

FCFE = Net Income + Depreciation – FCInv – WCInv + Net borrowing

= 500 + 100 – 90 – 25 + 80

= $565 million

Sustainable growth rate: g = b × ROE

b = Retention ratio = (1 – Dividend payout ratio)

g = (1 – 0.32) × 8.33 = 5.6%

r = 10%

Equity value = FCFE₁/(r – g) = (565 × 1.056)/(0.10 – 0.056) = 596.64/0.044 = $13,560 million

Value per share = 13,560/75 = $180.80

B is incorrect. It ignores net borrowing in calculating FCFE.

FCFE = 500 + 100 – 90 – 25 = 485

Equity value = (485 × 1.056)/(0.10 – 0.056) = 512.16/0.044 = 11,640

Value per share = 11,640/75 = $155

C is incorrect. It forgets to grow the FCFE.

FCFE = 500 + 100 – 90 – 25 + 80 = $565 million

Equity value = 565/(0.10 – 0.056) = 565 / 0.044 = 12,841

Value per share = 12,840/75 = $171