Future Ex Corp has total assets of CHF460’000’000 of which CHF60’000’000 is Equity. The cost of Equity is twelve percent and the cost of Debt is ten percent. Its cash flows from operating activities are CHF25’000’000 for year one and dividends paid to the firm’s shareholders represent 12% of the Cashflows from operating activities. Capital expenditures were CHF2’000’000 and Free Cash Flows are estimated to increase by 17% for 5 years. Assume the growth horizon of Cash Flows beyond year 5 is 6%. The firm has non-operating assets of CHF30’000’000 and its shares outstanding are 3’500’000. Required: 1. Compute the stock price using the corporate valuation method. Remember to find the WACC and FCF first. 2. If the market value per share of Future Ex Corp is CHF100, would you buy this stock. Justify your answer 3. You have done a bit of research and found out that Future Ex’s two main competitors’ share prices are $10 and $15. If you were to bring down Future Ex’s stock price to $12 per share, what could you do? Show calculations简答题