What is the share price estimate of intrinsic value of sam

Assignment Help Financial Management

Reference no: EM132031011

Boston Beer Company [SAM] had Free Cash Flow to the Firm last year (year 0) of $17,573,700. They have $583,000 in debt, $57,180,000 in cash on hand, and 12,980,000 shares outstanding. Use a simple DCF model to value SAM on a per share basis (project 5 years of FCFF, find a terminal value using the growing perpetuity shortcut, and take the present value). Assume FCFF will grow at 30% for 5 years, after which it will grow at 3% for eternity. Assume WACC is 8%.

What is the share price estimate of the intrinsic value of SAM?

A. 87.05

B. 22.05

C. 242.65

D. 198.65

2. Under Amour [UA] has a P/E ratio of 94.44 and a PEG ratio of 3.88 (according to Yahoo! Finance). How much are analysts expecting UA’s EPS to grow per year over the next five years?

A. 34.34%

B. 54.34%

C. 44.34%

D. 24.34%

Reference no: EM132031011

Questions Cloud

What is the bank liability liquidity reserve : The legal reserves for this bank are 10% of all deposits. What is the bank's liability liquidity reserve?

After transferring the funds back to the united states : After transferring the funds back to the United States, what was the investor’s return on her $330,000?

What is the holding period return on bond : The Farmer National Bank plans on selling this bond at the end of 8 years for $1071 (ex-interest). What is the holding period return on this bond?

What is operational risk : What is operational risk, how can it affect a bank and how can it be mitigated?

What is the share price estimate of intrinsic value of sam : What is the share price estimate of the intrinsic value of SAM?

What do you believe might be some possible explanations : •Using your sociological imagination, what do you believe might be some possible explanations for the social issue or problem?

How do you correctly write it in the paper with apa : When using a bible verse, such as Isiah:45:1-3, in a paper; how do you correctly write it in the paper with APA?

Reflect on the leadership style of workplace service : Reflect on the leadership style of your workplace service and comment on how you might incorporate this to develop your own knowledge, skills.

How leaders can contribute to conflict resolution in this : Describe methods of conflict resolution and management that either were utilized, or could be utilized in this situation.

User Account

All Pages