Prepare free cash flow projections for the next ten years

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Question - 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. Please refer to the Excel file given to you with this assignment (please see the Excel file under the "Readings" for the week 8). 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.

Reference no: EM132416087

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