Intrinsic Equity Value Assignment | Professional Writing

* Compute the intrinsic Equity Value (on a per share basis) of Company Y using the Free Cash Flow to Equity (FCFE) method based on the following set of information: –Company Y is forecast to generate $1MM in FCFE for the next 3 years, and thereafter expects the to grow at a 5% rate into perpetuity.

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The applied market capitalization rate for the unleveraged cash flow is 12% per year. The firm currently has a float of 600,000 shares outstanding.

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