Question: Using the data for Blaze Corp., calculate Blaze's Intrinsic value per share using FCFE approach assuming a constant growth in FCFE. Cash flow from

Using the data for Blaze Corp., calculate Blaze's Intrinsic value per share 

 

Using the data for Blaze Corp., calculate Blaze's Intrinsic value per share using FCFE approach assuming a constant growth in FCFE. Cash flow from operation was $350m Investment in fixed assets were $325m . . . . . Net borrowing was $30m The firm pays out 75% of earnings as dividends The net profit margin for the firm was 5%. Total asset turnover was 2 Total assets for the firm was $800m Total liabilities for the firm was $300m The Yield on Treasuries is 3% Blaze's beta is 0.9 The market risk premium is 5% Blaze had 15 Million shares outstanding

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To calculate Blaze Corps intrinsic value per share using the Free Cash Flow to Equity FCFE approach we need to follow these steps 1 Calculate Free Cas... View full answer

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