When Dr. Hernandez compares happiness in a sample of fratern…

When Dr. Hernandez compares happiness in a sample of fraternal and identical twins, she finds fraternal twins’ scores on this trait differ a great deal, while identical twins’ scores are virtually “the same.” Dr. Hernandez would cautiously conclude that happiness is:

You have been assigned the task of using the corporate, or f…

You have been assigned the task of using the corporate, or free cash flow, model to estimate Schadeler Corporation’s intrinsic value.  The firm’s WACC is 12%, its end-of-year free cash flow (FCF1) is expected to be $520 million, and the FCFs are expected to grow at a 25% rate for each of the next two years (t = 2 and 3).  After t = 3, the free cash flows are expected to grow forever at a constant rate of 8% per year.  The firm has $500 million of nonoperating assets.  The company has $975.46 million in long-term debt, no preferred stock, and it has 200 million shares of common stock outstanding.  What is the firm’s estimated intrinsic value per share of common stock?