Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Meta is expected to earn the following free cash flows: $163 billion next year (year 1), $164.5 billion in year 2 and $165.5 billion in

Meta is expected to earn the following free cash flows: $163 billion next year (year 1), $164.5 billion in year 2 and $165.5 billion in year 3. After these 3 years, its free cash flow is expected to grow at a constant rate of 4% forever. Given its cost of capital (WACC) is 10% and Meta has 7 billion shares outstanding, please calculate Meta intrinsic value per share based on the discounted free cash flow model

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets And Institutions A Modern Perspective

Authors: Anthony Saunders, Marcia Millon Cornett, Marcia Cornett

2nd Edition

007294109X, 978-0072941098

More Books

Students also viewed these Finance questions

Question

understand the diversity and complexity of ageing in the workplace;

Answered: 1 week ago