The FCFE method is needed for DCF. Thanks

ALOFT CATERING CORPORATION Stock Valuation Aloft Catcrine Core ia a global provider of full range catering services to the airline industry They provide a full range of food and beverage options to major global airlines and airport lounges around the world ey bae grown substantially over the last decade as a pioneer in providing specialized meal service for travelers with multiple needs. Alots tock currently trades on the Nasdaq stock exchange at $85 per share. You are interested in investing in Alat stock and would like to determine the intrinsic value. Towards this end, you have sallstad. .xckeant financial information for 2018, and other information for their future growth. This infomation is presented in Table I. The firm does not scarcents ax dividends, but their CFO has announced they will most likely begin paying dividends in two years' time (as of year-end 2020). Your task is to complete a report in which you assess the intrinsic value of Aloft Catering's stock in year-end 2018 using as many methods as you have infonation...fo and providing some recommendation for whether or not you should invest in the stock as of year-end 2018. Use the questions below to analyze and structure your report QUESTIONS 1. Estimate FCFE tor Aloft Catering from 2019 to 2022 using the information provided 111 Table 1 2. What is the appxopriatc.discount rate to apply to the cash flows developed above? 3. What is the tcxminal..xalue of Aloft in 2022, ie, what is the 2022 value of the cash flows Aloft iscnected to generate bevond 2022? 4. What is the intrinsic value of Alot stock as of year-end 2018 using the DCF method? 5. What is the intrinsic value of Aloft stock as of year-cnd 2018, using the Discounted Dividend T 6. What is average intrinsic value of Aloft stock using DCF method, Dividend Discount 7. If you expect the current market price of the stock to continue into year-end 2018, is the method? method, and multiples method? stock overvalued, undervalued, or correctly valued? Should you buy the stock? Fage 1 LC 8. Provide some sensitivity analysis on how the intrinsic value of the stock would change if the growth in net income fom 2019-1022 were to change by about *2%, and faction of eapex and NowC financed with debt were to dange by about *5%. Estimate t.stuM6 value undex each of the following scenarios. Dscs. findings Growth rate in Net Income 11% Fraction financed 35% 40% 45% 9% TABLE I Selected Data Related to Aloft Stock 201 8 Net Igsome 2018 Depreciation 2018 Capex plus Operating Working Capital $6,470,000 300,000 $1,700,000 Beta coefficient Tax rate Shares outstanding Net Income growth, 2019-2022 Capex plus NOWC growth, 2019-2022 Depreciation groath, 2019-2022 Constant growth in FCFE beyond 2022 Rak-free rate Market risk premium First dividend expected in year-end 2020 Growth in dinidend in 2021 and 2022 Constant growth in dividend beyond 2022 Firm plans to finance 40% of capex and NONC by uume-le-term debt. 21.0% 3,210,000 90% 8.0% 4.0% 6.0% 4.5% 4.0% 53.40 s96 4.75% V'aluation JMultiples tbased on rapidly grawie caterin hospitality fm Value as a multiple of FCFE Value as a multiple of net income 40.0 35.0 LG ALOFT CATERING CORPORATION Stock Valuation Aloft Catcrine Core ia a global provider of full range catering services to the airline industry They provide a full range of food and beverage options to major global airlines and airport lounges around the world ey bae grown substantially over the last decade as a pioneer in providing specialized meal service for travelers with multiple needs. Alots tock currently trades on the Nasdaq stock exchange at $85 per share. You are interested in investing in Alat stock and would like to determine the intrinsic value. Towards this end, you have sallstad. .xckeant financial information for 2018, and other information for their future growth. This infomation is presented in Table I. The firm does not scarcents ax dividends, but their CFO has announced they will most likely begin paying dividends in two years' time (as of year-end 2020). Your task is to complete a report in which you assess the intrinsic value of Aloft Catering's stock in year-end 2018 using as many methods as you have infonation...fo and providing some recommendation for whether or not you should invest in the stock as of year-end 2018. Use the questions below to analyze and structure your report QUESTIONS 1. Estimate FCFE tor Aloft Catering from 2019 to 2022 using the information provided 111 Table 1 2. What is the appxopriatc.discount rate to apply to the cash flows developed above? 3. What is the tcxminal..xalue of Aloft in 2022, ie, what is the 2022 value of the cash flows Aloft iscnected to generate bevond 2022? 4. What is the intrinsic value of Alot stock as of year-end 2018 using the DCF method? 5. What is the intrinsic value of Aloft stock as of year-cnd 2018, using the Discounted Dividend T 6. What is average intrinsic value of Aloft stock using DCF method, Dividend Discount 7. If you expect the current market price of the stock to continue into year-end 2018, is the method? method, and multiples method? stock overvalued, undervalued, or correctly valued? Should you buy the stock? Fage 1 LC 8. Provide some sensitivity analysis on how the intrinsic value of the stock would change if the growth in net income fom 2019-1022 were to change by about *2%, and faction of eapex and NowC financed with debt were to dange by about *5%. Estimate t.stuM6 value undex each of the following scenarios. Dscs. findings Growth rate in Net Income 11% Fraction financed 35% 40% 45% 9% TABLE I Selected Data Related to Aloft Stock 201 8 Net Igsome 2018 Depreciation 2018 Capex plus Operating Working Capital $6,470,000 300,000 $1,700,000 Beta coefficient Tax rate Shares outstanding Net Income growth, 2019-2022 Capex plus NOWC growth, 2019-2022 Depreciation groath, 2019-2022 Constant growth in FCFE beyond 2022 Rak-free rate Market risk premium First dividend expected in year-end 2020 Growth in dinidend in 2021 and 2022 Constant growth in dividend beyond 2022 Firm plans to finance 40% of capex and NONC by uume-le-term debt. 21.0% 3,210,000 90% 8.0% 4.0% 6.0% 4.5% 4.0% 53.40 s96 4.75% V'aluation JMultiples tbased on rapidly grawie caterin hospitality fm Value as a multiple of FCFE Value as a multiple of net income 40.0 35.0 LG