Question: You should use Excel to solve this. Please give a detailed solution and provide a screenshot of what you did in the excel function. Use
You should use Excel to solve this. Please give a detailed solution and provide a screenshot of what you did in the excel function.
Use the Corporate Valuation model is the most appropriate model to value Activision. Heres Free Cash Flow projections (in millions of $) needed to value Activision as a firm.
| Year | FCF |
| 1 | 2071 |
| 2 | 2300 |
| 3 | 2576 |
After year 3, Activisions free cash flow is expected to grow at a 4% constant growth rate in year 4 and beyond. Activisions WACC is 8%. Activision has $2,850 million in debt (market value of debt) and 767 million shares of common stock outstanding? What is your valuation of Activisions common stock today? Would you recommend buying Activisions stock today and why?
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