问题如下:
Matt is preparing to calculate the intrinsic value of Company M’s equity by using the FCFF model with the constant growth rate of 5% indefinitely. The relevant information is shown in the following table. What `s the value of Company M`s equity?
选项:
A.$5,145 million
B.$8,575 million
C.$12,862.5 million
解释:
C is correct.
考点:Valuation Models
解析:M公司的权益回报率为:E(Ri) = RF + βi[E(RM) – RF] = 2.4% + 0.8(7%) = 8%.
M公司的WACC为:WACC = Wd*Rd*(1 - T) + We*Re
WACC = 0.40(5%)(1 – 0.3) + 0.60(8%) = 1.68% + 6.42% = 6.2%
FCFF = NI + Int × (1-T) + NCC – Wcinv - FCinv
= 212 + 100 × (1-0.3) + 88 – (50-25) – 100 = $245 million
$$\(Firm\;Value=\frac{FCFF_0\times\left(1+g\right)}{WACC-g}=\frac{245\times\left(1+5\%\right)}{6.2\%-5\%}=\$21437.5million\)$$
Debt value = 0.4 * 21437.5 = $8575 million
Equity value = 0.6 * 21437.5 = $12862.5 million
(1)题目中说Market Risk Premium为7%,按照答案的算法,这就是ERP。可是这个表达是不是应该是Rm?ERP不是叫Equity Risk Premium吗? 那题目中如果给Rm的话一般是怎么描述Rm的?
(2)我在算debt的market value的时候,可不可以用Int Exp/Int Rate,即100/5%=2000来计算Debt的book value,以此作为market value的近似值?