17 10101 5 102254 million terminal value of equity in

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= 1859.17 (1+0.10)(1-.5) = 1022.54 million Terminal Value of equity in Tsingtao Breweries = FCFE 11 /(Stable period cost of equity – Stable growth rate) = 1022.54/(.1396-.10) = 25,821.81 million Value of Equity = PV of FCFE during the high growth period + PV of terminal value =-161.03 + 25821.81/(1.1471 5 *1.1456*1.1441*1.1426*1.1411*1.1396) = 6514.92 million Value of Equity per share = Value of Equity/ Number of Shares = 6514.92/653.15 = CY 9.97 per share The stock was trading at 10.10 Yuan per share, which would make it a fair price, based upon this valuation.
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  • One '11
  • hyip
  • Valuation, Generally Accepted Accounting Principles, Capital requirement, fcfe discount models

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