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The following case involves the valuation of Take-Two Interactive Software, Inc. (Take-Two or the Company). We have spent time in class discussing Take-Two's financial performance
The following case involves the valuation of Take-Two Interactive Software, Inc. ("Take-Two" or "the Company"). We have spent time in class discussing Take-Two's financial performance over the last five years and the Company's prospects going forward. Required: Using the cash flow projections you prepared for the Discussion Case - Forecasting (feel free to revise as you wish), the following assumptions and the cash flow based valuation method discussed in class (see PowerPoint notes and/or the file entitled "Discussion Case - Business valuation (steps)"), determine Take-Two's value per share at the time its 10-K was issued in 2023. Assumptions Take-Two's beta - 0.75 Take-Two's pretax cost of debt - 3.7% Take-Two's number of shares of common stock - 169.33 million Take-Two's stock price (as of May 26, 2023) - $138.98 per share Take-Two's market value - $23,533.48 million Risk free rate - 3.80% Market risk premium - 5.7% Please bring your documentation and work on this Discussion Case to class for class discussion
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