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  3. use the following data to calculate your stock val

Use the following data to calculate your stock value. ...

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Question

Accounting

Use the following data to calculate your stock value.
Additionally, note the following:
There are 50 million shares outstanding
Free cash flow (FCF) and earnings will grow at constant rate of 2.5%
Firm's equity beta is 1.50
Risk-free rate is 3% and market return is 13%
Total debt market value is same as the book value of debt
If we use the FCF (Free Cash Flow) model,
QUESTION #1. We first need to find the FCF, which is
Question Blank 1 of 6
choose your answer... 127.5225.5100.5397.5
million dollars.
QUESTION #2. Asset beta needs to be calculated, which is approximately
Question Blank 2 of 6
choose your answer... .75,.87,1.22,1.15
.
QUESTION #3. Stock value per share using FCF model is therefore approximately
Question Blank 3 of 6
$40.80,77,16.9,31.9
per share.

Answer & Explanation Solved by verified expert
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