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I have all answers for them. please show me how to solve them Nestliu operates in an economy with a risk-free rate of 4%. In
I have all answers for them. please show me how to solve them
Nestliu operates in an economy with a risk-free rate of 4%. In year 0, the firm had earnings of 80, revenues of 1200, capital expenditures of 150, and depreciation of 60 (all values per share). You decide to value the firm using a two-stage FCFE model. Consider the following values in your valuation: Assume also that: i) in the long run the Net Capex/Revenues ratio will be at a level consistent with the long run retention ratio; ii) the ROE in the long run applies only to new projects. a. Find the expected EPS for years 1 to 5. b. Find the FCFE for years 1 to 5. c. What is your estimate of the intrinsic value of one share in NestliuStep by Step Solution
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