Question: 1 . Using the discounted cash flow approach, why are projected free cash flows, rather than profits, used in estimating the value of the firm?
Using the discounted cash flow approach, why are projected free cash flows, rather than profits, used in estimating the value of the firm?What is the role of WACC in valuation?Based on Mr Suzukis estimate of growth rate of Saito Solars free cash flows over the next years, how much would Saito Solar be valued at The owners required rate of return was How do you estimate firm value when free cash flows of the firm are uneven for the first few years but stay constant after?Based on the free cash flow forecast provided in Appendix of the case and assume a range of WACC and terminal value growth rate what is the range of values for Saito Solar?Strategically, do you think Mr Saito and his partners should sell the firm at this time?Using the discounted cash flow approach, why are projected free cash flows, rather than profits, used in estimating the value of the firm?What is the role of WACC in valuation?Based on Mr Suzukis estimate of growth rate of Saito Solars free cash flows over the next years, how much would Saito Solar be valued at The owners required rate of return was How do you estimate firm value when free cash flows of the firm are uneven for the first few years but stay constant after?Based on the free cash flow forecast provided in Appendix of the case and assume a range of WACC and terminal value growth rate what is the range of values for Saito Solar?Strategically, do you think Mr Saito and his partners should sell the firm at this time?
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