Question: full procedure please 2. Liar Key Corp made last year $ 600 million in FCF to the firm (that is before debt payments but after

full procedure please 2. Liar Key Corp made last year $

full procedure please

2. Liar Key Corp made last year $ 600 million in FCF to the firm (that is before debt payments but after covering its reinvestment and tax needs). The company has a cost of capital of 8.5% and debt of $ 3.9 billion. There are 70 million of shares outstanding. The cashflow growth rate to perpetuity is 5%. a. What's the value of Liar Key Corp? b. Estimate the value of equity in Liar Key Corp? c. If the stock is trading at a multiple of 20 times its FCF to the firm per share, is Liar Key stock over or under valued, why? Would you buy or sell this stock

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