Is Molycorp equity fairly priced at $11.49? What terminal value assumptions would be consistent with an $11.49 share price, assuming the cash flow forecasts in exhibit 9 are reasonable? Assume a market risk premium of 6.0%, a corporate tax rate of 35%, and a debt beta of 0.30 and asset beta of 2.07.

Answer rating: 100% (QA)

Heres a breakdown of how to approach this Discounted Cash Flow DCF Model This is a common method to value companies by estimating future cash flows an... View the full answer