Overview The exam questions are based on a forecasting mod…
Overview The exam questions are based on a forecasting model for P&G where a 10-year finite forecast horizon was used. The “Parameters” tab in the exam’s Excel file (below) contains the I/S and B/S forecast parameters; the “IS&BS” tab contains the forecasted I/S and B/S; and the “SCF” tab contains the forecasted SCF. EXAM.xlsx Additional Information: The valuation date is 12/31/YY30. P&G’s cost of equity capital is 9.0%. P&G’s WACC is 4.0045%. If you need it, the market value of P&G’s Preferred Stock is $6,252.9 If you need it, the market value of P&G’s Non-Controlling Interest is $318.2 P&G has Excess Cash on the Valuation Date of $35,000. On the valuation date, P&G faces a $300,000 lawsuit that it has a 25% chance of losing which would require payment exactly 15 years from the valuation date.