The most recent financial report of ABC Inc. indicates that it generated $550 million, its net working capital has increased by $10 million, its long-term assets have increased by $100 million, and its debt has increased by $50 million. If ABC's cost of equity capital is 17.5%, its sustainable long-term growth rate is 5%, and it has 100 million shares outstanding.

What is the intrinsic value of an ABC stock?

Answer rating: 100% (QA)

To calculate the intrinsic value of ABC Incs stock we can use the foll... View the full answer