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(5) 1. Below are the free cash flow projections for a firm that is going public in 2014 (now). The final FCF of 2019 is
(5) 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 (2) b) In addition, you are given the following information. What is another estimate for the firm's price per share based on this information? 2014 EBITDA Medain EBITDA multiple of similar firms 687 8.9
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