question archive Assume that today is December 31, 2022, and that the following information applies to Abner Airlines, a relatively mature company: ' After—tax operating income [EBIT{1—Tj] for end of year 2022 was $600 million ' The depreciation expense for 21122 was $140 million The capital expenditures for 2022 was $225 million No change in net operating working capital The free cash ?ow is expected to grow at a constant rate of 3
Assume that today is December 31, 2022, and that the following information applies to Abner Airlines, a relatively mature company: ' After—tax operating income [EBIT{1—Tj] for end of year 2022 was $600 million ' The depreciation expense for 21122 was $140 million The capital expenditures for 2022 was $225 million No change in net operating working capital The free cash ?ow is expected to grow at a constant rate of 3
Subject:MathPrice: Bought3
Assume that today is December 31, 2022, and that the following information applies to Abner Airlines, a relatively mature company: ' After—tax operating income [EBIT{1—Tj] for end of year 2022 was $600 million ' The depreciation expense for 21122 was $140 million The capital expenditures for 2022 was $225 million No change in net operating working capital The free cash ?ow is expected to grow at a constant rate of 3.5% per year perpetually The cost of equity is 14% The weighted average cost of capital [T-ETACC) is 10% The market value of the company's debt is $3.8?5 billion ' 200 million shares of stock are outstanding. What should be the intrinsic value of the stock's price?
