Recalculate the intrinsic value of GE's shares using the free cash flow model of Spreadsheet 13.2 (available

Question:

Recalculate the intrinsic value of GE's shares using the model of Spreadsheet 13.2 (available in Connect; link to Chapter 13 material). Treat each scenario independently.
a. GE's P/E ratio starting in 2018 (cell G3) will be 15.5.
b. GE's current stock market beta (cell B21) is 1.10.
c. The market risk premium (cell B27) is 8.5%.
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...