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Exercise

Equity Value Per Free Cash Flow to Equity Model

Now that you have calculated the present value of the projection period FCFE (pv_proj_period) and the present value of the terminal value (pv_terminal), you can now calculate the firm's equity value per share. To have a number comparable to the firm's stock price, we need to then calculate the equity value per share. Assume that the firm has shares outstanding (shout) of 15 million shares.

Instructions

100 XP
  • Calculate aggregate equity value.
  • Calculate equity value per share.