Ellen Goldberg, an equity analyst, has been tasked with valuing Intel Corp. (INTC) using the free cash to the firm methodology. Goldberg gathers the following information for INTC for the most recent year:

Cash flow from operations was $20.963 billion

Investment in fixed capital was $10.778 billion

Shares outstanding are 5.25 billion

INTC does not carry any long-term debt (100% equity) and therefore interest expense is $0. Goldberg estimates the cost of equity for INTC to be 12%.

Goldberg estimates the intrinsic value of INTC using two different approaches:

Approach 1:Gordon growth FCFF model, using a perpetual growth rate of 7%

Approach 2:Three-stage FCFF model, assuming growth rates of 15% for next 2 years, then 10% for 2 years after that, and then 7% starting in year

5 into perpetuity

1. 1.) What was FCFF per share for INTC for the most recent year? (1 point)

2. 2.) What is the estimated intrinsic value per share of INTC under Approach 1? (2 points)

3. 3.) What is the estimated intrinsic value per share of INTC under Approach 2?