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cash flow will grow at 5 percent per year in 2023 and 2024, after that this...

cash flow will grow at 5 percent per year in 2023 and 2024, after that this will grow at 4 percent per year. GM had 305 million shares outstanding at the beginning of 2019, trading at $73.25 per share. Using a required return of 10 percent, calculate the following for GM at the beginning of 2019:

2019

2020

2021

2022

Cash flow from operation

$1,035

$3,180

$3,155

$2,120

Cash investment

425

480

445

820
  1. The enterprise value. [6 marks]
  2. Equity value. [1 marks]
  3. Equity value per share. [2 marks]
  4. Based on your estimate, should investors buy the share of this company?      [1 marks]
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