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Exercise

Calculate Value During Projection Period

The FCFE projections are stored in the fcfe data frame. Now that you have an estimate for the cost of equity (ke) of 11.55%, calculate the value as of December 31, 2016 of the FCFE during the projection period.

Instructions

100 XP
  • Add discount periods to fcfe object.
  • Calculate the discount factor for each year.
  • Calculate the present value of each cash flow.
  • Sum the PVs of each cash flow to calculate the projection period value.