CASE: Tottenham Hotspur plc
Read the pdf case : Tottenham Hotspur plc:
Use the necessary information in the case to answer the two questions below.
Show all workings and provided any and all documents. An explanantion of how it’s done would be appreciated.
Required:
A. Assume a terminal value of £221.42, and market risk premium of 5%,perform a DCF analysis using the cash flow projections (exhibit 5) in the case.
Based on this DCF analysis, what is the value of Tottenham Hotspur, plc?(35 marks)
B. At its current stock price of £13.80, is Tottenham fairly valued?(5 marks)
Discuss the terminal value of £221.42, and market risk premium of 5%,perform a DCF analysis using the cash flow projections (exhibit 5) in the case. Based on this DCF analysis, what is the value of Tottenham Hotspur, plc?