Reference no: EM132459210

Assume that a public corporation has 1,000,000 shares outstanding and faces a marginal tax rate of 25%. Also, assume that this corporation plows-back 75% of its net income. First, you are to create the necessary Balance Sheets and Income Statement and then calculate the annual Cash Flow from Assets (aka: CFFA or Free Cash Flows (FCF)). A constraint here, however, is that your must range between $8,000,000 and $11,000,000 annually. Second, after calculating , you are to assume that this corporation is a constant-growth perpetuity and estimate its present value (aka: intrinsic value). Assume the market determined risk adjusted required rate of return (aka: the appropriate discount rate, WACC) is 4.875% for this corporation. Said another way, you are to replicate and explain the relevant parts of the textbook, notes, and lectures associated with this question. Teach me the concept(s).