AlBl C lDlElFl G Parvis Inc. wants to calculate its cost of equity. The company paid a dividend of $0.40 this year which is growing at 6% annually. It also has a risk premium rate of 7%, WACC = 10%, a terminal FCF growth rate of 8%, and the following expected free cash flows for the next 3 years: 2020 50 2021 60 2022 75 If Parvis' current stock price is $12 and its average cost of debt is 4.5%, find: 3) Company stock price using the corporate valuation model. Assume Parvis has 250 shares of common stock outstanding. Pa rvis PV of free cash flows _ Parvis intrinsic value of stock If the corporate valuation model is to be believed, is Pa rvis Inc. stock a good buy? Yes No