Question: use B&M's data and the free cash flow valuation model to answer the following questions. B&M which is expected to grow at a rate of
use B&M's data and the free cash flow valuation model to answer the following questions. B&M which is expected to grow at a rate of 5% and has a cash flow of $25 million. They have reported short term investments of $100 million, debt of $200 million sbf $50 million preferred stock. The average cost of capital (WACC) is 11% 1. What is the estimated value of expressions? 2.what is the estimated total corporate value?(this is the entity value) 3. what is its intrinsic value of equity? 4. What is its estimated intrinsic value of equity?
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