** All yellow cells require a number FCFE 0 and FCFE 1 and Stock Intrinsic Value Template for Problems \#1 and \#2 EPS (WorkingCapitalChange)*(1-debt ratio) (NetCapitalExpenditure)*(1-debt ratio) FCFE0 FCFE 1 Capitalization Rate Po intrinsic stock value Acutal Market Price Over or Under Valued In a Stable Growth situation, what is the approximate Intrinsic Value of the Terrific Telephone stock and is it over or under valued? This is problem \#2. d. A) Intrinsic Value of Terrific Telephone Stock =$60.25 Since the market value of the stock is $60.25, Terrific Telephone is fairly priced. a. B Intrinsic Value of Terrific Telephone Stock =$58.80 Since the market value of the stock is $60.25, Terrific Telephone is Over-Valued. b. (C) Intrinsic Value of Terrific Telephone Stock =$85.80 Since the market value of the stock is $60.25, Terrific Telephone is Over-Valued. c. (D) Intrinsic Value of Terrific Telephone Stock =$85.80 Since the market value of the stock is $60.25, Terrific Telephone is Under-Valued. ** All yellow cells require a number FCFE 0 and FCFE 1 and Stock Intrinsic Value Template for Problems \#1 and \#2 EPS (WorkingCapitalChange)*(1-debt ratio) (NetCapitalExpenditure)*(1-debt ratio) FCFE0 FCFE 1 Capitalization Rate Po intrinsic stock value Acutal Market Price Over or Under Valued In a Stable Growth situation, what is the approximate Intrinsic Value of the Terrific Telephone stock and is it over or under valued? This is problem \#2. d. A) Intrinsic Value of Terrific Telephone Stock =$60.25 Since the market value of the stock is $60.25, Terrific Telephone is fairly priced. a. B Intrinsic Value of Terrific Telephone Stock =$58.80 Since the market value of the stock is $60.25, Terrific Telephone is Over-Valued. b. (C) Intrinsic Value of Terrific Telephone Stock =$85.80 Since the market value of the stock is $60.25, Terrific Telephone is Over-Valued. c. (D) Intrinsic Value of Terrific Telephone Stock =$85.80 Since the market value of the stock is $60.25, Terrific Telephone is Under-Valued