Dantzler Corporation is a fast - growing supplier of office products. Analysts project the following free cash

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Dantzler Corporation is a fast $-$ growing supplier of office products. Analysts project the following free cash flows $($ FCFs $)$ during the next $3$ years, after which FCF is expected to grow at a constant $8 %$ rate. Dantzler's WACC is $12 % .$

Year $0 1 2 3$

$. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$

$. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$

FCF $($ $ millions $) -$ $ $17$ $ $11$ $ $58$

What is Dantzler's horizon, or continuing, value? $($ Hint: Find the value of all free cash flows beyond Year $3$ discounted back to Year $3 .)$ Enter your answer in millions. For example, an answer of $ $13, 550, 000$ should be entered as $13.55 .$ Do not round intermediate calculations.

million

What is the firm's market value today? Assume that Dantzler has zero non $-$ operating assets. Enter your answer in millions. For example, an answer of $ $13, 550, 000$ should be entered as $13.55 .$

million

Suppose Dantzler has $ $45.20$ million of debt and $39$ million shares of stock outstanding. What is your estimate of the current price per share? Write out your answer completely. For example, $0.00025$ million should be entered as $250 .$

Posted Date: May 11, 2024 05:15 AM

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Dantzler Corporation is a fast - growing supplier of office products. Analysts project the following free cash

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