It is the end of year 2021. A company XYZ has projected free cash flow to equity
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It is the end of year 2021. A company XYZ has projected free cash flow to equity $10, $20, $22 per share at the end of year 2022, 2023 and 2024. Projected growth rate after year 2023 will be stabilized at 10%. Meanwhile, risk-free rate is 2% and risk premium of stock XYZ is 10% with a beta of 1.4. What is your valuation estimation of stock XYZ using free cash flow model?
A. 113
B. 166.71
C. 153.69
D. 77.19
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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