11. Problem 9.15 (corporate valuation)

Dantzler corporation is a fast growing supplier of office products. Analyst project the following free cash flows (FCFs) during the next three years, after which FCF is expected to grow at a constant 6% rate. Dantzler's WACC is 13%.

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a. what is Dantzler's horizon, or continuing value? Hint find the value of all free cash flows beyond your three discounted back to your three. Enter your answer in millions. For example, in the answer of $13,550,000 should be under does 13.55. Do not round intermediate calculations. Round your answer to two decimal places.

$ ? million

b. what is the firms market value today? Assume that Dantzler has 09 operating assets. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two decimal places.

$ ? million

c. suppose dancer has $126.10 million of debt and 23 million shares of stock outstanding. What is your estimate at the current price per share? Write out your answer completely. For example, 0.00025 million should be entered as 250. Do not round intermediate calculations. Round your answer to the nearest cent.

$ ?

Year FCF (\$ millions)