Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(provide the number without any unite and accurate to two decimal place. no calculation process is needed. fill in the blank with the number directly.)

image text in transcribed

(provide the number without any unite and accurate to two decimal place. no calculation process is needed. fill in the blank with the number directly.)

question1: if the sales in 2012 is 4500 then how much is the Intrinsic Value Per Share in 2012?

question 2: if the sales growth rate is 6% in 2016 then how much is the Intrinsic Value Per Share in 2012?

question 3: if the tax rate is 25% for all the years then how much is the Intrinsic Value Per Share in 2012?

question 4: if the wacc is 8% for all the years then how much is the Intrinsic Value Per Share in 2012?

4:07 (1+WACCI" WACC -9. . PV of Calculation of Fisie Value Sum of PVs of FCFS, 2013-2017 PV of HV Total corporate value Less: market value of debt and preferred Intrinsic value of common equity Shares outstanding millions) 5245.1 1,783.7 $2,0288 880.0 $1,160 50.0 Intrinsic Value Per Share $23.38 This is the estimate of Allied's intrinsic value based on the views of one analyst. Other analysts would have different opinions, hence would reach different conclusions as to the intrinsic value. Also, the firm's CFO and its internal analysis might have different views. Note though, that the market price would be determined by the views of the marginal investor operating in the market Note also that as conditions such as sales, costs, and capital market rate change, analysts will modify their positions and reach new conclusions as to the firm's Intrinsic value. Conditions do change, and these changes lead to changes in estimates of the intrinsic value and thus in stock prices 4:07 (1+WACCI" WACC -9. . PV of Calculation of Fisie Value Sum of PVs of FCFS, 2013-2017 PV of HV Total corporate value Less: market value of debt and preferred Intrinsic value of common equity Shares outstanding millions) 5245.1 1,783.7 $2,0288 880.0 $1,160 50.0 Intrinsic Value Per Share $23.38 This is the estimate of Allied's intrinsic value based on the views of one analyst. Other analysts would have different opinions, hence would reach different conclusions as to the intrinsic value. Also, the firm's CFO and its internal analysis might have different views. Note though, that the market price would be determined by the views of the marginal investor operating in the market Note also that as conditions such as sales, costs, and capital market rate change, analysts will modify their positions and reach new conclusions as to the firm's Intrinsic value. Conditions do change, and these changes lead to changes in estimates of the intrinsic value and thus in stock prices

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_2

Step: 3

blur-text-image_3

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

International Financial Management

Authors: Cheol Eun, Bruce Resnick

5thEdition

0073382345, 9780073382340

More Books

Students also viewed these Finance questions

Question

Explain the pages in white the expert taxes

Answered: 1 week ago

Question

Discuss how to use job evaluation to build job structures.

Answered: 1 week ago

Question

Discuss why unions exist.

Answered: 1 week ago

Question

Discuss the alternative types of health care plans.

Answered: 1 week ago