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Can you provide Formulas and steps on how to solve it ( By hand ) Eagle Enterprises recently reported free cash flow of $1.2 million.
Can you provide Formulas and steps on how to solve it ( By hand )
Eagle Enterprises recently reported free cash flow of $1.2 million. FCF is growing at approximately 5% annually. The firm's cost of capital is 12%. The firm's financials revealed short-term investments of $900,000, debt of $3 million, preferred stock of $800,000, and total assets of $11.5 million. The firm also reported sales of $9.75 million at that time. The firm has 500,000 common shares outstanding and 750,000 shares authorized. a. Determine the value of operations (2 points), b. Total corporate value (1 point), C. Intrinsic value of equity (1 point), and d. Intrinsic value of equity per share (1 point)Step by Step Solution
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