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What is the estimated intrinsic value per share of common stock?

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You must estimate the intrinsic value of Tsetseko Technologies' stock. Tsetseko's end-of-year free cash flow (FCF) is expected to be $17.50 million, and it is expected to grow at a constant rate of 7.00% a year thereafter. The company's WACC is 10.00%. Tsetseko has $125.00 million of long-term debt plus preferred stock, and there are 15.00 million shares of common stock outstanding. What is Tsetseko's estimated intrinsic value per share of common stock?

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Solution Summary

This solution provides calculations for the value of the firm using free cash flows and WACC. Explaination for the calculations is provided in 121 words.

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Hi,

Please look at the requirements of the question. as per the requirement I have calculated the value of firm using free cash flows and WACC. As the value of ...

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Jayant Kumar, MBA
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  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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