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Calculate the intrinsic value of baxter stock

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Reference no: EM131482848

Camper,Inc. is interested in acquiring Baxter Corp. Baxter has 30 million shares outstanding. Its WACC is 11% and the risk free rate is 4%. Baxter has $5million in debt. Baxter's free cash flow is $20 million annually and is expected to grow at a constant rate of 5% per year. Calculate the intrinsic value of Baxter's stock, using the formula Vop = FCF0(1+g)/WACC - g.

  • $295 million
  • $328 million
  • $345 million
  • $350 million
  • None of the above

Reference no: EM131482848

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