Would you expect a firm's annual free cash flow to be greater than or less than NOPAT in a given year? Explain.
Answer to relevant QuestionsWhat is the appropriate discount rate to use when estimating a firm's intrinsic value using discounted free cash flow analysis? Explain why. Calculate UTX's gross, operating and net profit margin for each year 2010-2012. Calculate UTX's net operating profit after tax (NOPAT) for each year 2010-2012. Using the present value of UTX's free cash flows calculated in problem 34 as a starting point, calculate the per share intrinsic value of UTX for each year 2010-2012. Manipulate the WACC and long-term growth forecasting assumptions for Amazon on the chapter spreadsheet's Financial Analysis & Valuation worksheet (cells B147-F157). Use these modeling inputs to estimate the fair value of the ...
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