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6. Dozier Corporation is a fast-growing supplier of ofce products. Analysts project the following free cash ows (FCFs) during the next 3 years, after which

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6. Dozier Corporation is a fast-growing supplier of ofce products. Analysts project the following free cash ows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 7% rate. Dozier's WACC is 12%. Year 0 1 2 3 llll FCF (S millions) 520 $30 $40 a. What is Dozier's horizon, or continuing, value? (Hint: Find the value of all free cash ows beyond Year 3 discounted back to Year 3.) b. What is the rm's value today? c. Suppose Dozier has $100 million of debt and 10 million shares of stock outstanding. What is your estimate of the current price per share

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