# The intrinsic value of the firm and the common stock

1. Select a company with the following characteristics:

a. it should not be a brokerage house or finance related firm.

b.  only select firms which have their Beta listed in finance.yahoo.com,  and have long term debt (non-convertible debt) in their capital  structure.

Don't use plagiarized sources. Get Your Custom Essay on
The intrinsic value of the firm and the common stock
Just from \$13/Page

c. it should have its stock and bond prices quoted in finance.yahoo.com.

d. its Free Cash Flow (FCF) in 2017 is positive.

1. Presenting the following by estimating (do not forget to answer the questions listed under c below):
2. The firm’s WACC
3. The intrinsic value of the firm and the common stock.
4. Write a paragraph on each of the following issues:

– what can the firm do to lower their cost of capital

– if you had any money to invest in this firm now, why would you or not invest in this firm based on where you see this firm.

1. Keeping in mind the following presentation style:

State  in clear and simple terms how you came up with all estimates.  Identify  all the assumptions and models used to derive the estimates. As far as  it is relevant to the presentation of the estimates, explain the  workings of these models.  Keep the report clear and concise.

In order to present these estimates, you will need to calculate:

1. The firm’s cost of equity using: CAPM or Discounted Cash Flow (DCF) models
2. The firm’s cost of long term debt and preferred stock
3.  Cost of capital of the firm (WACC)
4. The FCF of the firm in year 2016 and the expected future FCFs using growth assumptions.
5.  The intrinsic value of the firm and its common stock

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.