1.

A stock has no dividends. Last periods FCFF is $5.05 and it has an estimated annual free cash flow growth rate of 7%. The company should maintain this growth rate for 3 more years before it decays to the estimated long term growth rate of 2.46%. The WACC for this stock is 6.3% and its current ROE is 21.2%. You also found out that the firm has debt per share of $36.03. What it the estimated intrinsic value using the multistage FCFF method? State your answer as a dollar amount with two decimal places and use the adjusted method as shown in the textbook.

2.

A stock has no dividends. The last period's FCFF is $4.8 and it has an estimated annual free cash flow growth rate of 8.3%. The WACC for this stock is 8.8% and its long term growth rate is 2.46%. It also has an ROE of 18.7%. You also found out that the firm has debt per share of $28.75. What it the estimated intrinsic value using the constant state FCFF method? State your answer as a dollar amount with two decimal places and use the adjusted method as shown in the textbook.