In 2012, Smith Inc. free cash flow was $8 billion. For the next 2 years (2013 and 2014), its free cash flows are projected at $9 billion and $11 billion respectively. After 2014, its free cash flow is expected to be constant at $14 billion forever. If the cost of capital for Smith Inc. is 7% and its total share outstanding is 4.2 billion shares, calculate Smith present value of intrinsic value per share today. (SHOW WORK)
In 2012, Smith Inc. free cash flow was $8 billion. For the next 2 years (2013 and 2014), its free cash flows are projected at $9 billion and $11 billion respectively. After 2014, its free cash flow is expected to be constant at $14 billion forever. If the cost of capital for Smith Inc. is 7% and its total share outstanding is 4.2 billion shares, calculate Smith present value of intrinsic value per share today. (SHOW WORK)
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The post In 2012, Smith Inc. free cash flow was $8 billion. For the next 2 years (2013 and 2014), its free cash flows are projected at $9 billion and $11 billion respectively. After 2014, its free cash flow is expected to be constant at $14 billion forever. If the cost of capital for Smith Inc. is 7% and its total share outstanding is 4.2 billion shares, calculate Smith present value of intrinsic value per share today. (SHOW WORK) appeared first on Superb Professors.
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