Calculate the intrinsic firm value of jpmorgan using

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Question 1.Calculate the Free Cash Flow (FCF0) for the most recent fiscal year of JPMorgan. FCF is typically calculated as Operating Cash Flow minus Capital Expenditure.

Question 2.Select a suitable growth rate (gn) for JPMorgan, which represents the expected growth rate of its Free Cash Flow into the future. Compare this growth rate to the long-run GDP growth rate to ensure it is reasonable.

Question 3.Calculate the firm's FCF1 (the Free Cash Flow in the next year) based on the chosen growth rate and FCF0.

Question 4.Estimate the Weighted Average Cost of Capital (WACC) for JPMorgan. The WACC represents the weighted average cost of financing the firm's operations and is calculated using the cost of equity and the cost of debt. The cost of equity can be estimated using the Capital Asset Pricing Model (CAPM).

Question 5.Calculate the intrinsic firm value of JPMorgan using the Free Cash Flow to Firm (FCFF) valuation model:

 

Reference no: EM133522316

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