Question: Please provide correct steps for these questions. Q 1 : You are a value investor and are interested in applying the historical average graham number

Please provide correct steps for these questions. Q1: You are a value investor and are interested in applying the historical average graham number to calculate the intrinsic value of a stock. This company has earnings per share (EPS) of $3.87 and book value per share (BVPS) of $27.84. You have observed that the current P/E ratio of the company is 19.3, but its 5-year historical average is 17.9. You have observed that the current P/B ratio of the company is 2.92, but its 5-year historical average is 3.33. What is the estimated intrinsic value for this stock? State your answer as a dollar amount with two decimal places. Correct answer is 80.14 Q2: A stock has no dividends. The last period's FCFF is $4.84 and it has an estimated annual free cash flow growth rate of 6.9%. The WACC for this stock is 7.8% and its long-term growth rate is 2.46%. It also has an ROE of 14%. You also found out that the firm has debt per share of $30.95. What is the estimated intrinsic value using the constant state FCFF method? State your answer as a dollar amount with two decimal places. Correct answer is 48.92

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