You have been assigned the task of using the corporate valuation model to estimate Hannah’s intrinsic value.  Hannah's WACC is 12.00%, its expected end-of-year free cash flow (FCF₁) is $125 million, the FCFs are expected to grow at a constant rate of 4.00% a year in the future, the company has $162.5 million of long-term debt plus preferred stock, and it has 50 million shares of common stock outstanding.  What is the per-share estimate of the stock’s intrinsic value?

Answer rating: 100% (QA)

To estimate Hannahs intrinsic value using the corporate valuation model well use the Gordon Growth M... View the full answer