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QUESTION

Please I need this .(very urgent asap) Given the following information:Year 1 Free

Please I need this .(very urgent asap) Given the following information:

Year 1 Free

cash flow:    40 million

Year 2  Free cash flow     90 m

Year 3 Free cash flow     100 m

After year 3, expected FCF growth is expected to be 4%

The cost of capital is 9%

Short term investments = 50 million

Debt is currently  25 million

Preferred stock = 5 million

There are 20 million outstanding stock shares.

1. Calculate the intrinsic stock price. 

2. If the current stock price was $100.00, would you buy the stock?  Why/WHY NOT:

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