Problem: You're a financial advisor and one of your clients comes to you for advice. He wants to invest in company XYZ. What would be your first steps in order to help your client? After taking those required steps you investigate the financial data, you find out that the current stock price is $17.50. The company has had an FCF growth rate at an average of4% for utu pe the past 10 years. The current rate of inflation is 4% and the (risk free rate) current 30-year bond yield is 5%. The most recent information from the 2017 statement of cash flows, indicates a $1.5 billion in capital expenditures, $7 billion in cash from operating activities and $800 million from investing activities and there are 850 million shares outstanding. Using the DCF valuation method used in class, what would you recommend to your client and why? will inte