Q4. The cash flows are given below of XYZ. After the 3rd year FCF is expected to grow at a constant 7.5% rate.WACC is 13%. It has $10 million in short term investments, $100 million debt, and 10 million shares of stock. Whatis the intrinsic price per share i.e. Po? Q4. The cash flows are given below of XYZ. After the 3rd year FCF is expected to grow at a constant 7.5% rate.WACC is 13%. It has $10 million in short term investments, $100 million debt, and 10 million shares of stock. Whatis the intrinsic price per share i.e. Po?1 2 3YearFree cash flow ($ millions) $15 $35 $40

The value per share can be calculated as follows :

4. The cash flows are given below of XYZ. After the 3rd year FCF is expected to grow at a constant 7.5% rate. WACC is 13%. It has $10 million in short term investments, $100 million debt, and 10 million shares of stock. What is the intrinsic price per

4. The cash flows are given below of XYZ. After the 3rd year FCF is expected to grow at a constant 7.5% rate. WACC is 13%. It has $10 million in short term investments, $100 million debt, and 10 million shares of stock. What is the intrinsic price per

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter21: Dynamic Capital Structures And Corporate Valuation

Section: Chapter Questions

Problem 9P

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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Q4. The cash flows are given below of XYZ. After the 3rd year FCF is expected to grow at a constant 7.5% rate.
WACC is 13%. It has $10 million in short term investments, $100 million debt, and 10 million shares of stock. What
is the intrinsic price per share i.e. Po?

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