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[null,"FCFE STABLE GROWTH MODEL"]
[]
[null,"This model is designed to value the equity in a stable firm on the basis of"]
[null,"free cashflows to equity, especially when they are"]
[null,"different from dividends paid."]
[]
[null,"Assumptions in the model:"]
[null,"1. The firm is in steady state and will grow at a stable rate forever."]
[null,"2. The firm does not pay out what it can afford to in dividends, i.e., Dividends ≠ FCFE."]
[]
[null,"User defined inputs"]
[null,"The user has to define the following inputs to the model:"]
[null,"1. Current Earnings per share "]
[null,"2. Capital Spending and Depreciation per share"]
[null,"3. Change in working capital per share"]
[null,"4. Desired debt level for financing working capital and capital spending needs."]
[null,"5. Cost of Equity or Inputs to the CAPM (Beta, Riskfree rate, Risk Premium)"]
[null,"6. Expected Growth Rate in free cashflows to equity forever."]
[]
[null,"Please enter inputs to the model:"]
[null,"Current Earnings per share =",null,{"v":5.45,"d":"$5.45"},"(in currency)","{You can input all the numbers for the aggregate company, if you so desire}"]
[]
[null,"Capital Spending/share =",null,{"v":2,"d":"$2.00"},"(in currency)"]
[null,"Depreciation / share =",null,{"v":1.7469204927211646,"d":"$1.75"},"(in currency)"]
[null,"Chg. Working Capital/share =",null,{"v":0.6,"d":"$0.60"},"(in currency)"]
[null,"Do you want to offset capital expenditures by depreciation in the future?",{"$nulls":4},"No","(Yes or No)"]
[]
[null,"Desired debt financing ratio =",null,{"v":0.2997,"d":"29.97%"},"( in percent)"]
[]
[null,"Are you directly entering the cost of equity? (Yes or No)",{"$nulls":3},"No"]
[null,"If yes, enter cost of equity =",null,null,"(in percent)"]
[null,"If no, enter the inputs for the CAPM"]
[null,"Beta of the stock =",null,1.1]
[null,"Riskfree rate =",null,{"v":0.07,"d":"7%"},"(in percent)"]
[null,"Risk Premium=",null,{"v":0.055,"d":"5.50%"},"(in percent)"]
[]
[null,"Expected Growth Rate =",null,{"v":0.06,"d":"6%"}," (in percent)","The expected growth rate for a stable firm"]
[{"$nulls":5},"cannot be significantly higher than the nominal"]
[{"$nulls":5},"growth rate in the economy in which the firm"]
[{"$nulls":5},"operates. It can be lower."]
[]
[null,"Warnings:",""]
[null,null," "]
[null,null," "]
[]
[null,"This is the output from the Gordon Growth Model"]
[null,"Firm Details: from inputs on prior page"]
[null,"Current Earnings per share =",{"$nulls":3},{"v":5.45,"d":"$5.45"}]
[null,"  -(1- Desired debt fraction) *",null,null,{"v":0.7002999999999999,"d":"70.03%"}]
[null," (Capital Spending - Depreciation)",null,null,{"v":0.25307950727883544,"d":"$0.25"},{"v":0.17723157894736843,"d":"$0.18"}]
[null," -(1- Desired debt fraction) *",null,null,{"v":0.7002999999999999,"d":"70.03%"}]
[null,"∂ Working Capital",null,null,{"v":0.6,"d":"$0.60"},{"v":0.42017999999999994,"d":"$0.42"}]
[null,"Free Cashflow to Equity =",{"$nulls":3},{"v":4.852588421052632,"d":"$4.85"}]
[]
[null,"Cost of Equity =",null,{"v":0.1305,"d":"13.05%"}]
[null,"Expected Growth rate =",null,{"v":0.06,"d":"6.00%"}," "]
[]
[null,null,"Gordon Growth Model Value =",null,null,{"v":72.96090391937291,"d":"$72.96"}]
[]
[]
[null,"Growth rate","Value"]
[null,{"v":0.1,"d":"10.00%"},{"v":175.01138567730806,"d":"$175.01"}]
[null,{"v":0.09,"d":"9.00%"},{"v":130.60052787524364,"d":"$130.60"}]
[null,{"v":0.08,"d":"8.00%"},{"v":103.77812860865035,"d":"$103.78"}]
[null,{"v":0.06999999999999999,"d":"7.00%"},{"v":85.82263819051761,"d":"$85.82"}]
[null,{"v":0.06,"d":"6.00%"},{"v":72.96090391937291,"d":"$72.96"}]
[null,{"v":0.049999999999999996,"d":"5.00%"},{"v":63.29463157894736,"d":"$63.29"}]
[null,{"v":0.039999999999999994,"d":"4.00%"},{"v":55.764552020936314,"d":"$55.76"}]
[null,{"v":0.03,"d":"3.00%"},{"v":49.73299575805185,"d":"$49.73"}]
[null,{"v":0.019999999999999997,"d":"2.00%"},{"v":44.79312388663967,"d":"$44.79"}]