1. Using the data for Tessier-Ashpool Corp, calculate their intrinsic value per share assuming a constant growth in FCFE.

DATA FOR TESSIER-ASHPOOL CORP

• The firm is a mature firm in the consumer staples sector
• Sales for the most recent year were $500 Million
• The firm has a Net Profit Margin of 10%.
• Depreciation for the year was $75MM
• Capital Expenditures were $150MM
• Investment in Net Working Capital was $40MM
• The firm finances all investments 60% with debt and 40% with equity.
• The firm pays out 80% of earnings as dividends
• The ROE for the firm was 12%
• The Yield on Treasuries is 3%
• TACs beta is 2.5
• The market risk premium is 4%
• TAC had 20 Million shares outstanding