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3. Find the equity value for a company with the following information: Free cash flow in 2022 is expected to be $19,000 Free cash flow

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3. Find the equity value for a company with the following information: Free cash flow in 2022 is expected to be $19,000 Free cash flow in 2023 is expected to be $19,500 Free cash flow in 2024 is expected to be $20,800 You are not given growth rates beyond 2024, so you plug in 1.8% which is What GDP tends to grow at The company's WACC is 7.5%, and they have $125,000 of debt Other companies are selling at P/E multiples of 18x and EV/EBITDA multiples of 11x. a) What is the equity value using the free cash flow valuation method? b) What are two equity valuations using other methods? c) Which is the best method to use for valuation this case? Why? 3. Find the equity value for a company with the following information: Free cash flow in 2022 is expected to be $19,000 Free cash flow in 2023 is expected to be $19,500 Free cash flow in 2024 is expected to be $20,800 You are not given growth rates beyond 2024, so you plug in 1.8% which is What GDP tends to grow at The company's WACC is 7.5%, and they have $125,000 of debt Other companies are selling at P/E multiples of 18x and EV/EBITDA multiples of 11x. a) What is the equity value using the free cash flow valuation method? b) What are two equity valuations using other methods? c) Which is the best method to use for valuation this case? Why

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