Can you please explain the formulas used to caculate the 3 YELLOW rows given the

Question

Can you please explain the formulas used to caculate the 3 YELLOW rows given the data available here in this table?
- Horizon Value Present Value
- PV of Free Future Cash Flows
- Estimated Stock Price

Two - Stage Growth Model Company X Growth 1 (five years) 8% Growth 3 (6th year on) 4% Future Cash Flow 0 (Average) 1,242,220,000.00 Future Cash Flow 1 (8%) 1,341,597,600.00 Future Cash Flow 2 (8%) 1,448,925,408.00 Future Cash Flow 3 (8%) 1,564,839,441.00 Future Cash Flow 4 (8%) 1,690,026,596.00 Future Cash Flow 5 (8%) 1,825,228,724.00 Future Cash Flow 6 (8%) 1,898,237,873.00 Horizon Value Present Value 96,357,252,411.00 Weighted Average Cost of Capital 5.97% PV of Free Future Cash Flows 7,917,752,783.00 Total Present Value (PV + HV) 104,275,005,194.00 Debt 2,347,500,000.00 Estimated Market Cap 101,927,505,195.00 Number of Shares Outstanding 1,485,100,000.00 Estimated Stock Price $68.63

Explanation / Answer

Horizon value present value = Future cash flow 6/(wacc - growth rate (6th year onwards))

Horizon value present value = 1,898,237,873/(0.0597 - 0.04)

Horizon value present value = $96,357,252,411

PV of Free Future Cash Flows = 1,242,220,000 + 1,341,597,600/1.0597 + 1,448,925,408/1.05972 + 1,564,839,441/1.05973 + 1,690,026,596/1.05974 + 1,825,228,724/1.05975

PV of Free Future Cash Flows = 1,242,220,000 + 1266016419 + 1290268692 + 1314985550 + 1340175891 + 1365848792

PV of Free Future Cash Flows = $7,917,752,783

Estimated stock price = Estimated market cap/number of shares outstanding

Estimated stock price = 101927505195/1485100000

Estimated stock price = $68.63

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