Question: NOTE: This question requires to be done on EXCEL Use the Corporate Valuation model as the most appropriate model to value Activision. Heres Free Cash

NOTE: This question requires to be done on EXCEL

Use the Corporate Valuation model as the most appropriate model to value Activision. Heres Free Cash Flow projections (in millions of $) needed to value Activision as a firm.

Year FCF

1 2,180

2 2,398

3 2,638

4 2,875

5 3,133

After year 5, Activisions free cash flow is expected to grow at a 5% constant growth rate in year 6 and beyond. Activisions WACC is 7.5%. Activision has $4,390 million in debt (market value of debt) and 762 million shares of common stock outstanding? What is your valuation of Activisions common stock today? Would you recommend buying Activisions stock today and why? Use current price in the table to help aid your recommendation.

NOTE: This question requires to be done on EXCEL Use the Corporate

Stock ACTIVISION Walmart $98.00 Current Price $68.00 Estimated Price 1 year from now $81.99 $105.03 Annual Expected Dividend (D1) $0.38 $2.12

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