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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 | 687 | ||||||||||||
Medain EBITDA multiple of similar firms | 8.9 |
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