Determine the equity value per share

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Reference no: EM131995200

Steve Bono is valuing the equity of Petroleo Brasileiro (nYSe: PBr), commonly known as Petrobras, in early 2013 (before the release of 2012 financial results) by using the single-stage (constant-growth) FCFE model.

Estimated FCFE for 2012 is 1.05 Brazilian reais (Brl). Bono's best estimates of input values for the analysis are as follows:

The FCFE growth rate is 6.0 percent.

The risk-free rate is 5.2 percent.

The equity risk premium is 5.5 percent.

Beta is 1.2.

What is the equity value per share?

Reference no: EM131995200

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