1) What is Majong's terminal value (in $ million)?

2) What is the firm value today (in $ million)?

3) What is a good estimate of Majong's price per share?

Problem 5 Intro Majong Inc. forecasts that it will have the free cash flows shown below. The free cash flows are expected to grow by 5% per year after year 3. Year CFA ($ million) -20 48 54 The weighted average cost of capital is 15%. The firm has $65 million of debt and 10 million shares outstanding