Develop an appropriate free cash flow valuation model

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Reference no: EM131151473

Investment Banking Project

Retrieve the latest financial statements of the Apple, and assume you are the underwriters' analyst team assigned to Apple.

Write a paper of no more than 500 words that includes the following discussion and analysis:

1. Determine how much capital in the form of new equity should be raised net of underwriters' compensation if the company wants to raise new capital to invest in an expansion project in the amount of 40% of its current market capitalization while keeping its debt to equity ratio unchanged.

2. Develop an appropriate free cash flow valuation model to assess the intrinsic value of the company's stock, based on the company's historical financial performance, the expansion project in which new funds will be invested, and analyst's expectation of the company's future financial performance. Explain and justify your assumptions for forecasting the company's future free cash flows.

Format your paper consistent with APA guidelines.

Reference no: EM131151473

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