Question
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 | Value |
Shares outstanding | 5,691 |
NCF_op | 80,851 |
NetCapEx | 11,014 |
STI (Short term investments) | 20,625 |
LTI (Long term investments) | 195,461 |
STD (short term debt) | 11,942 |
LTD (long term debt) | 54,617 |
g s | 9.04 % |
g | 4.44 % |
WACC | 10.25 % |
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
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