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Using a multi-growth free cash flow model (MGF model), where free cash flows grow at the rate g s for n=4 years then at a
Using a multi-growth free cash flow model (MGF model), where free cash flows grow at the rate g s for n=4 years then at a constant rate g thereafter, what is the intrinsic value per share for Acme common stock given the following information?:
Item
Shares outstanding: 5,691
NCF_op: 80,851
NetCapEx: 11,014
STI: 20,625
LTI: 195,461
STD: 11,942
LTD: 54,617
g s:9.04 %
g: 4.44 %
WACC: 10.25 %
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