Question
Using a multi-growth free cash flow model (MGF model), where free cash flows grow at the rate for n=4 years then at a constant rate
Using a multi-growth free cash flow model (MGF model), where free cash flows grow at the rate for n=4 years then at a constant rate thereafter, what is the intrinsic value per share for Acme common stock given the following information?:
| Item | Value |
| Shares outstanding | 5,396 |
| NCF_op | 86,622 |
| NetCapEx | 11,333 |
| STI | 20,742 |
| LTI | 180,503 |
| STD | 11,278 |
| LTD | 60,159 |
| 10.45 % | |
| 4.44 % | |
| WACC | 14.05 % |
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Fundamentals of Investments Valuation and Management
Authors: Bradford Jordan, Thomas Miller
7th edition
978-0078096785, 78096782, 978-0077861636, 77861639, 978-0078115660
