Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Chapter 9, Problem 20P
Summary Introduction

To determine: The value of the share using a discounted FCF model.

Introduction

Discounted FCF model:

It is a method of calculating a company’s stock value; the expected value is the sum of the future dividend payment, which is discounted back to their present value. In other words, the stock value is determined based on the sum of the present value of the future dividend.

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Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book

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