Question
Estimate the intrinsic stock price () with the following data. (20 points) Year 1 FCF=-$10 million, Year 2 FCF=$20 million, Year 3 FCF=$30 million ,
Estimate the intrinsic stock price () with the following data. (20 points)
Year 1 FCF=-$10 million, Year 2 FCF=$20 million, Year 3 FCF=$30 million
, FCF grows at constant rate of 5% after 3 years, WACC=11%,t term
investments=$100 million, Debt=$200 million, Preferred Stock=$50 million, Number of
shares=n=$20million
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
