Question: Use the Supernormal then Constant Growth Model and the data below to find this company's value. Forecast the free cash flows for t+1 and t+2,
Use the Supernormal then Constant Growth Model and the data below to find this company's value. Forecast the free cash flows for t+1 and t+2, and the present value of the t+3 cash flows.
Riskfree rate 0.02
Market rate 0.15
Beta 1.10
Sales t 1,000,000
Supernormal g (t+1) 0.06
Constant g (after t+1) 0.02
OPM 0.200
Tax rate 0.300
Capex % 0.09
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
