Question: Using a multi-growth free cash flow model (MGF model), where free cash flows grow at the rate for n=4 years then at a constant rate
Using a multi-growth free cash flow model (MGF model), where free cash flows grow at the rate for n=4 years then at a constant rate thereafter, what is the intrinsic value per share for Acme common stock given the following information?:
| Item | Value |
| Shares outstanding | 5,691 |
| NCF_op | 80,851 |
| NetCapEx | 11,014 |
| STI | 20,625 |
| LTI | 195,461 |
| STD | 11,942 |
| LTD | 54,617 |
| 9.04 % | |
| 4.44 % | |
| WACC | 10.25 % |
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