Prepare free cash flow projections
Course:- Corporate Finance
Reference No.:- EM13676649

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PNG Airlines is positioning itself for global expansion. The Chief Executive Officer of the company has asked its Chief Financial Officer to prepare a valuation report based on free cash flow (FCF) projections. The CFO needs your expertise in this matter. The Excel file has PNG's financial statements for the last 5 years. This file also provides you with certain valuation assumptions that you would need. Using discounted PV method, you are required to:

(1) Prepare free cash flow (FCF) projections for the next 10 years.

(2) Determine PNG's terminal value at the end of 10th year.

(3) Based on discounted free cash flows, determine enterprise value, equity value and value per share.

(4) Write an 5-7 pages long report covering airline industry trends, PNG's financial strengths, PNG's valuation potential and suggestions for value enhancement, if any. (NOTE: You may use annual reports of airlines in America to prepare the background information assuming that the qualitative information pertains to PNG airlines)


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It contains Two Separate files, MS Excel file having solution for first three questions in separate tabs and MS word document having a report in 4 Pages, and 1489 Words count.

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Airline industry trends:

Airlines is the one of the famous industry across the globe and which is holding many of the factors in order to increase the number of many required things in the world. As airlines everywhere in the world are presently in the progression of developing an digital inflight infrastructure for example Internet connectivity and aircraft intranet and inflight portal and the modern generation of in-seat IFE systems has agreed the Android platform and the very next phase for airlines is to develop advanced applications that will get distinguish to the passenger involvement.

There are many companies in the world which is trying to adopt to the new and latest technologies of the IT in the world which is recommending the airlines in order to increase the number of requirement and then number of sales in the market towards the latest technologies and then which is required to go for the major improvements. And even there are many number of improvements which is required to develop many of the major things in order to process the number improvements at every stage in the airlines, like suppose in the airline industry we are developing the one

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