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For a DCF valuation, you find that the present value of FCFs is $100,000, and the present value of the horizon value is $25,000. You
For a DCF valuation, you find that the present value of FCFs is $100,000, and the present value of the horizon value is $25,000. You also determine that the short-term investments is worth $10,000. What is the value of the company (i.e., the estimated total intrinsic value)?
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Solution The value of the company or the estimated total intrinsic value can be calculated by summing the present value of free cash flows FCFs the pr...
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
