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5. Wall Inc. forecasts that it will have the free cash flows (in millions) shown below. The weighted average cost of capital is 10%
5. Wall Inc. forecasts that it will have the free cash flows (in millions) shown below. The weighted average cost of capital is 10% and the free cash flows are expected to continue to grow at 8.2 percent after Year 3 indefinitely. Year 1 2 3 Free cash flow $10.00 -$48.00 $150.50 A. Calculate the firm's FCF for year 4. B. Calculate the Horizon value in year 3. C. Assuming a $150 million for the company's total market value of debt and preferred stock, and 20 million shares outstanding calculate the CURRENT intrinsic value per share. Show all your work.
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
