Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. use fcf model to estimate intrinsic value. compani

use FCF model to estimate intrinsic value. companies wacc is 10% end of yr FCF...

90.2K

Verified Solution

Question

Finance

use FCF model to estimate intrinsic value.

companies wacc is 10% end of yr FCF expected to be 150,000,000. FCF expected to grow contant at 6% a year in the future

company has 200 million of long term debt plus preferred stock. 50,000,000 common shares outstanding.

intrinsic value per share of common share?

1.71

2.68.52

3.66.12

4.73.49

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

A project has annual cash flows of $8,000 for the next 10 years and then $10,500...

Accounting
1.2K views

Thinking of the Middle East, identify at least one item that is most likely produced using...

Physics
1.2K views

In Searle s apparatus we have two wires During experiment we study the extension in...

Geometry
1.2K views

29 30 V 60 30 45 X y 45 6 31 60 16 30

Basic Math
1.2K views

In a survey of 101 pet owners 51 said they own a dog and 11...

Statistics
1.2K views

7 Timone and Pumba each invest 200 in a savings account Timone gains 4 13...

Accounting
1.2K views

Knowledge Check 01 Which of the following describes the effect of a stock...

Accounting
1.2K views

The following information has been taken from the financial statements of Juno plc for last...

Accounting
1.2K views

The records of Phoenix Corporation revealed the following data for the current year. 22. Refer...

Accounting
1.2K views

Company purchased 400 units for $30 each on January 31. Purchased 440 units for $33...

Accounting
1.2K views

\table[[Purchases,800000,],[Purchases Returns,,20000],[Repair and maintenance,7600,],[Salaries and wages,288000,],[Sales,,1560000],[Sales Returns,30000,],[Telephone,20000,],[Vehicle expenses,51600,],[,3245000,3245000]] The following transactions took place: ...

Finance
1.2K views

Question 6: On January 1, 2019, you assumed a short-sale of 550 shares of XYZ...