Estimate the intrinsic value of the three firms

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Ray wants your opinion on which of these three firms presents the best investment opportunity (given a 50 million US dollar investment) today. The companies for comparison are Rolls Royce, Raytheon & General Electric within the Aviation Industry. The case study is to determine which firm is the best investment following the COVID 19 disruption to the industry. I was hoping for assistance with the following question and understanding how to derive the solution. There are no statistics provided for the question within the task

Estimate the intrinsic value of the three firms using an appropriate discount factor based on your estimate of uncertainty and Ray Dalio's risk aversion. Compare and contrast. Which company provides the best investment opportunity based on a push of the past only?

Reference no: EM132909704

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