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    Case Study Solution

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    ganesh teja
    The document contains calculations from Ms. Yamada, Mr. Suzuki, and Mr. Yoshida valuing Saito Solar with different growth rate and discount rate assumptions. Ms. Yamada values the company between $5,554 million and $7,696 million depending on whether operations continue indefinitely or for 20 years. Mr. Suzuki values it between $2,692 million and $4,335 million. Mr. Yoshida simply states the value is 5000 million yen.

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    Case Study Solution

    Uploaded by

    ganesh teja
    934 views4 pages
    The document contains calculations from Ms. Yamada, Mr. Suzuki, and Mr. Yoshida valuing Saito Solar with different growth rate and discount rate assumptions. Ms. Yamada values the company between $5,554 million and $7,696 million depending on whether operations continue indefinitely or for 20 years. Mr. Suzuki values it between $2,692 million and $4,335 million. Mr. Yoshida simply states the value is 5000 million yen.

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    The document contains calculations from Ms. Yamada, Mr. Suzuki, and Mr. Yoshida valuing Saito Solar with different growth rate and discount rate assumptions. Ms. Yamada values the company between $5,554 million and $7,696 million depending on whether operations continue indefinitely or for 20 years. Mr. Suzuki values it between $2,692 million and $4,335 million. Mr. Yoshida simply states the value is 5000 million yen.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    934 views4 pages

    Case Study Solution

    Uploaded by

    ganesh teja
    The document contains calculations from Ms. Yamada, Mr. Suzuki, and Mr. Yoshida valuing Saito Solar with different growth rate and discount rate assumptions. Ms. Yamada values the company between $5,554 million and $7,696 million depending on whether operations continue indefinitely or for 20 years. Mr. Suzuki values it between $2,692 million and $4,335 million. Mr. Yoshida simply states the value is 5000 million yen.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    Saito Solar Valuation

    Ms. Yamada's calculations


    Growth rate in CFs (beyond 2017) 3% 2% 1%
    Discount rate 10% 10% 10%

    2012 2013
    FCF 250.1 396.4

    Planning Period CFs


    PV of Planning Period CFs at 2012 1954.55 million Yen
    Using NPV $1,954.55 million Yen

    Co. is a growing concern


    Growth rates 3% 2%
    Terminal Value of CFs at 2017 9246.4571 8012.1
    PV of TV at 2012 5741.3224 4974.88373248
    Total Firm Value at 2012 7695.88 6929.44

    Co. operations end after 20 years


    Growth rates 3% 2%
    Terminal Value of CFs at 2017 5797.8521 5430.68006129
    PV of TV of CFs at 2012 3600.01 3372.02504876
    Total Firm Value at 2012 5554.56 5326.58

    Mr. Suzuki's calculations


    CF AT 2012 250.1
    Growth rate in CFs (beyond 2012) 3% 4% 5%
    Discount rate 10% 10% 10%

    Co. operations end in 20 years


    Growth rate in CFs (beyond 2012) 3% 4%
    PV of CFs at 2012 2692.0731 2923.15065456

    Co.is a growing concern


    Growth rate in CFs (beyond 2012) 3% 4%
    PV of CFs at 2012 3680.0429 4335.06666667

    Mr. Yoshida's calculations


    Value of the firm 5000 million Yen
    3% 2% 1%
    2014 2015 2016 2017 2018
    465.2 538.9 607.1 628.4 647.252 640.968 634.684

    1%
    7052.044 million Yen
    4378.765 million Yen
    6333.32 million Yen

    1%
    5092.093 million Yen
    3161.789 million Yen
    5116.34 million Yen

    5%
    3180.694 million Yen

    5%
    5252.1 million Yen

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