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Q2.: The valuation assumptions about FMA Inc. are provided as follows. Suppose the cost of...

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Q2.: The valuation assumptions about FMA Inc. are provided as follows. Suppose the cost of equity is 6% and FCFE will grow at a constant rate of 2% beyond 2022. Net Profit Working Capital Net long-term operating assets Net Debt 2020A 2021F 2022F 25,000 23,000 26000 56,000 52,000 51000 180,000 190,000 195000 75,000 76,000 78000 Develop an Excel template to calculate the following: a) free cash flow to equity (FCFE) for the forecast period. b) present value of FCFE over 2021-2022. c) present value of the terminal value of FCFE beyond 2022 d) total value of the firm e) FMA had 75000 shares outstanding at the end of 2020, trading at $7 per share. Calculate value per share. f) Based on the given data, what should be the investment strategy

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