Question
CORRECT ANSWERS NEEDED ASAP (Will Upvote!) A stock has no dividends. The last periods FCFE is $5.65 and it has an estimated annual free cash
CORRECT ANSWERS NEEDED ASAP (Will Upvote!)
A stock has no dividends. The last periods FCFE is $5.65 and it has an estimated annual free cash flow growth rate of 6.9%. The company should maintain this growth rate for 3 more years before it decays to the estimated long term growth rate of 2.46%. The required return for this stock is 11.3% and its current ROE is 36.1%. What it the estimated intrinsic value using the multistage FCFE method? State your answer as a dollar amount with two decimal places and use the adjusted method as shown in the textbook.
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