Question: Explain using a simple constant growth example how you would use the free cash flow valuation model to estimate the intrinsic value of equity. Indicate
Explain using a simple constant growth example how you would use the free cash flow valuation model to estimate the intrinsic value of equity. Indicate what data you would need, and give an example of a “reasonable” value for each data input. How would this be different if you used dividends as the basis for your evaluation?
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The free cash flow FCF valuation model estimates the intrinsic value of equity by discounting the future free cash flows of a company to their present ... View full answer
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