Free Cashflows to Equity. ADAM has 1,575,500  shares outstanding. Its projected FCFE for next year is $30,500,123.00, its required return on equity (Links to an external site.) is 13 and 4/5 % and perpetual growth rate (Links to an external site.) of FCFE is 5 and 6/8 %.   Find the intrinsic value of the company's share.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Free Cashflows to Equity. ADAM has 1,575,500  shares outstanding. Its projected FCFE for next year is $30,500,123.00, its required return on equity (Links to an external site.) is 13 and 4/5 % and perpetual growth rate (Links to an external site.) of FCFE is 5 and 6/8 %.

 

Find the intrinsic value of the company's share.

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