Business & Finance Homework Help
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: