FCFE for determining yearly long-term growth rate in a restructuring company

Hey mates!

I'm new to the forum - so hello to ya'll!

I'm also relatively new to the corporate finance world, so take it easy on me ;)

I have a question to you regarding the FCFE growth rate model!

I am doing some case problems to learn about valuing companys and one case problem wants to have the yearly long-term growth rates for a 10 years period. At the moment, the company is in a restructuring phase which should be finished 6 years after the the last period I have to consider for my problem.

Since the FCFE is not suitable for this problem as I am missing the net debt issued and also the debt financing, do you know other good methods for determine the longterm growth rate?

Second question: How can I derive the actual leverage of a company from the net financial leverage? Given is debt, spread, equity, and different ratios (ROE, ROA, NOPAT margin etc?)

I hope my question is stated in a clear way.

Thanks in advance for your efforts!

Best regards
Cotton

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”