1)
FCF1 = 14,950
FCF2 = 14,950 (1 + 0.238) = 18,508.1
FCF3 = 18,508.1 (1 + 0.238) = 22,913.0278
FCF4 = 22,913.0278 (1 + 0.0354) = 23,724.14898
Value at year 3 = FCF4 / required rate - growth rate
Value at year 3 = 23,724.14898 / 0.1062 - 0.0354
Value at year 3 = 23,724.14898 / 0.0708
Value at year 3 = 335,086.85
Current total firm = 14,950 / (1 + 0.1062)1 + 18,508.1 / (1 + 0.1062)2 + 22,913.0278 / (1 + 0.1062)3 + 335,086.85 / (1 + 0.1062)3
Current total firm = $293,113.07 million
2)
Intrinsic value = (293,113.07 - 219,835) / 150
Intrinsic value = $488.52
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