Basic Stock Valuation: Free Cash Flow Valuation Model

nearest cent. per share Quantitative Problem 2: Hadley Inc. forecasts the year-end free cash flows (in millions) shown below. shares outstanding. What is the value of the stock price today (Year 0)? Do not round intermediate calculations. Round your answer to the nearest cent. per share According to the valuation models developed in this chapter, the value that an investor assigns to a share of stock is dependent on the length of time the investor plans to hold the stock. The statement above is Conclusions principle, we should find the same intrinsic value using either model, but differences are often observed