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What is the intrinsic value of the company

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Reference no: EM132996806

Question - You wish to value a firm using the free cash flow to equity (FCFE) approach. After reviewing the financial statements, you calculated that the current FCFE in year 0 is 2,449,023. You believe that the free cash flow will grow at a much higher growth rate of 12.90% over the next two years, and a constant growth rate of 2.58% thereafter. You also computed that the cost of equity for the firm is 12.91% and the weighted average cost of capital (WACC) is 8%. What is the intrinsic value of the company in two decimal places?

Reference no: EM132996806

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