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Politics : Formerly About Applied Materials
AMAT 304.08+2.2%Feb 5 3:59 PM EST

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To: daryll40 who wrote (40434)12/4/2000 6:25:22 PM
From: Chien Li  Read Replies (1) of 70976
 
From discounted free cash flow analysis, using factors that include interest rate, beta, EBIT, growth rate, tax (35%), debt, working capital change, and several other factors, you can calculate the value of the firm. For AMAT with an assumed growth rate of 16% that gradually decreases to 10% in year 10, with a long-term bond rate of 5.8% (the corresponding cost of capital is 18.1%), the firm value would be $29.6/share.
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