Question
You need to estimate the intrinsic value of Noe Technologies stock. Year-end free cash flow (FCF 1 ) is expected to be $27.50 million and
You need to estimate the intrinsic value of Noe Technologies stock. Year-end free cash flow (FCF 1 ) is expected to be $27.50 million and is expected to grow at a constant rate of 7.0% one year later. The company's WACC is 10.0%, it has $125.0 million of long-term debt plus preferred shares outstanding, and there are 15.0 million common shares outstanding. What is the company's estimated intrinsic value per common share?
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Step: 1
To estimate the intrinsic value per common share of Noe Technologies stock we can use the dividend d...
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
