calculate the price of a stock using the corporate valuation (FCF) method with excel. Create a model that has 4 years of abnormal growth and then settles into a constant growth rate using excel and show how to do it so i can replicate the steps. can use random numbers
And the excel must show the right intrinsic price of the stock
thank you .
Values assumed: FCF0 = 10 million
Abnormal growth rate = 10%; constant growth rate = 3%
WACC = 12%
Market value of debt = 50 million
Market value of preferred stock = 20 million
Shares outstanding = 2 million
Formulas screenshot:
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