Given information on the attached Excel spreadsheets, conduct a business valuation for Client, Inc....

Question

Given information on the attached Excel spreadsheets, conduct a business valuation for Client, Inc. Calculate to answer the followings:

What is Cost of capital? (25 pts)
Company Value using Discounted Cash Flows (DCF)? (25 pts)
Company Value Residual Income Model (RIM)? (25 pts)
Conduct Sensitivity Analysis for DCF and RMI solutions. (25 pts)

Submit your answers in one PDF file. All calculation must be included in the pdf, not just numbers.

Note, all the needed information has been provided in the excel file that I uploaded.

bonus-credit-assignment-data-3watlee1.xlsx

Akash · Accepted Answer

Running Head: INVESTMENT		1
INVESTMENT		5
INVESTMENT
Table of Contents
1) Cost of capital	3
2) Company Value using Discounted Cash Flows (DCF)	3
3) Company value Residual Income Model (RIM)	4
4) Sensitivity Analysis for DCF and RIM solutions	4
Reference	5
1) Cost of capital
In this scenario, there is no information regarding dividends and market price. Therefore assuming the face value per share is $1. Therefore, number of shares = $5122121/$1 = 5122121 shares. In addition to that, assuming that total net profit is distributed as dividends. In the current year, there is a loss of $33343017. Therefore, assuming that there was no dividend payout in the current year. The book value per share is equal to the value of equity divided by the number of shares. Therefore, the book value per share is equal to $1779103/5122121 = $0.347. 
Assuming that the market value of the share is equal to the book value of the share, therefore, the market value of the share is assumed to be $0.347.

Given information on the attached Excel spreadsheets, conduct a business valuation for Client, Inc. Calculate to answer the followings: What is Cost of capital? (25 pts) Company Value using Discounted...

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