Question
Use the Supernormal then Constant Growth Model and the data below to find this company's value. Forecast the free cash flows for t+1 and t+2,
Use the Supernormal then Constant Growth Model and the data below to find this company's value. Forecast the free cash flows for t+1 and t+2, and the present value of the t+3 cash flows.
Beta 1.10
Sales t 1,000,000
Supernormal g (t+1) 0.06
Constant g (after t+1) 0.02
OPM 0.200
Tax rate 0.300
Capex % 0.09
A.
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
