Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

will like for correct answer asap Talsa, Inc., an all-equity firm, operates in the growing electric vehicle market. Over the next three years (T=1,2,3), Talsa,

will like for correct answer asap
image text in transcribed
Talsa, Inc., an all-equity firm, operates in the growing electric vehicle market. Over the next three years (T=1,2,3), Talsa, Inc., is expected to generate FCF of $2.4 billion, $3.6 billion. and $5.0 billion. After Year 3, FCF is expected to grow at a constant rate of 2.5 percent per year, resulting in an Exit Value of $53.95 billion. Talsa has 500 million shares outstanding. What is Talsa's intrinsic price/share based on a FCF valuation of the firm? $98.60 $93.94$89.74$105.00$112.33

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Institutions Management

Authors: Anthony Saunders

3rd Edition

007303259X, 978-0073032597

More Books

Students also viewed these Finance questions

Question

118. If X is uniformly distributed on [1, 1], find the pdf of .

Answered: 1 week ago