Answered step by step
Verified Expert Solution
Question
1 Approved Answer
explain why intrinsic stock price would differ from market stock price. Intrinsic stock price - $142.63, Market stock price - $163.38. what are contributing factors
explain why intrinsic stock price would differ from market stock price. Intrinsic stock price - $142.63, Market stock price - $163.38. what are contributing factors for a difference?
- sum of PV (FCF) for year 1 to 10 = 325600.20
- continuation value = 1207624.20
- PV (continuation value) 508157.40
- Intrinsic Value of operations = 907938.60
- value of debt = 158931
- intrinsic value of equity = 749007.60
- shares outstanding (diluted) = 5251.692
- Intrinsic stock price = $142.63
- Market stock price = $163.38
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started