What is total corporate value

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The first acquisition target is a privately held company in a mature industry owned by two brothers, each with 5 million shares of stock. The company currently has free cash flow of $20 million. Its WACC is 11%, and the FCF is expected to grow at a constant rate of 5%. The company owns marketable securities of $100 million. It is financed with $200 million of debt, $50 million of preferred stock, and $210 million of book equity

1) What is the value of operations?

2) What is the total corporate value?

3) What is the intrinsic value of equity?

4) What is the intrinsic stock price per share?

5) What is the intrinsic MVA (MVA=total corporate value-total book value of capital supplied by investors?

Reference no: EM13139434

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