6) Acumen Corp. had the following financial information for 2019, and they have projected the following rates for future growth and valuation multiples for equity: 2019 Total Assets 2019 Net Income 2019 Depreciation 2019 Cash flow Plowback Shares outstanding Net Income growth, 2020- 2021 Cash flow Plowback growth, 2020 2021 Depreciation growth, 2020 2021 Constant growth in FCFE beyond 2021 Growth in Total Assets Risk-free rate Market risk premium Beta coefficient Debt Ratio Equity value as a multiple of FCFE Equity value as a multiple of book value $8,000,000 $4,600,000 $450,000 $360,000 3,000,000 7.0% 4.0% 4.0% 5.0% 6.0% 4.8% 4.0% 0.80 40% 32.0 30.0 a) Estimate FCFE for Acumen Corp. from 2020 to 2021 b) What is the appropriate discount rate to apply to the cash flows developed above? c) What is the terminal value of Acumen stock in 2021, i.e., what is the 2021 value of the cash flows Acumen is expected to generate beyond 2021? d) What is the intrinsic value of Acumen stock as of year-end 2019 using the DCF method? e) What is average intrinsic value of Acumen stock using DCF and the multiples methods? e) If the market price of the stock is $60 per share, is the stock over-valued or under-valued? 6) Acumen Corp. had the following financial information for 2019, and they have projected the following rates for future growth and valuation multiples for equity: 2019 Total Assets 2019 Net Income 2019 Depreciation 2019 Cash flow Plowback Shares outstanding Net Income growth, 2020- 2021 Cash flow Plowback growth, 2020 2021 Depreciation growth, 2020 2021 Constant growth in FCFE beyond 2021 Growth in Total Assets Risk-free rate Market risk premium Beta coefficient Debt Ratio Equity value as a multiple of FCFE Equity value as a multiple of book value $8,000,000 $4,600,000 $450,000 $360,000 3,000,000 7.0% 4.0% 4.0% 5.0% 6.0% 4.8% 4.0% 0.80 40% 32.0 30.0 a) Estimate FCFE for Acumen Corp. from 2020 to 2021 b) What is the appropriate discount rate to apply to the cash flows developed above? c) What is the terminal value of Acumen stock in 2021, i.e., what is the 2021 value of the cash flows Acumen is expected to generate beyond 2021? d) What is the intrinsic value of Acumen stock as of year-end 2019 using the DCF method? e) What is average intrinsic value of Acumen stock using DCF and the multiples methods? e) If the market price of the stock is $60 per share, is the stock over-valued or under-valued