Find the market value of common stock-intrinsic stock price

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Reference no: EM131056294

FCFs for year 1,2, and 3 are $20, $23, and $25 for a certain firm. The required rate of return for stock is 8%. Assume the firm’s life is 3 years then what should the stock price of this firm? This firm has $1 of debt and $1.5 of preferred stock. Number of shares outstanding is 6 millions. 1. Find the market value (MV) of the firm 2. Find the market value of common stock 3. Find the intrinsic stock price

Reference no: EM131056294

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