Web Question: Go to investor.google.com and find Googles latest annual income statement. Determine its free cash flow.

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Web Question: Go to investor.google.com and find Google’s latest annual income statement. Determine its free cash flow. If you discount its free cash flow as a perpetuity growing at rate g, and you discount at 12%, what perpetual growth rate justifies Google’s current market price?

Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
Perpetuity
Perpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...
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Related Book For  book-img-for-question

International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

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