TRY Co., a company with 25% tax rate, has a free cash flow of P150,000,000 for the next year and is expected to grow at the rate of 4% constantly. The firm maintains a debt-to-equity ratio of 25%. The...

TRY Co., a company with 25% tax rate, has a free cash flow of P150,000,000 for the next year and is expected to grow at the rate of 4% constantly. The firm maintains a debt-to-equity ratio of 25%. The after-tax cost of debt and equity is 5% and 10%, respectively. Try Co. has 10,000,000 outstanding shares, and the combined market value of debt and preferred stock is P1,500,000,000. Compute for the per share intrinsic value of Try Co.

Jun 11, 2022
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