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1. Below are the free cash flow projections for a firm that is going public in 2014 (now). The final FCF of 2019 is expected
| 1. Below are the free cash flow projections for a firm that is going public in 2014 (now). The final FCF of 2019 is expected to grow at a rate of 2%. The WACC of the firm is 5%. The firm has $2,267 in debt and 189 shares outstanding. Calculate 1) the total value of the firm, 2) the market value of equity 3) and the price per share. | |||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||
| FCF | 106.95 | 195.16 | 283.59 | 233.38 | 239.67 | ||||
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Intermediate Financial Management
Authors: Eugene F. Brigham, Louis C. Gapenski
4th Edition
0030754828, 978-0030754821
