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9.2 BBB Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, Year 0
9.2 BBB Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, Year 0 2 FCF ($ millions) -$20 $30 $40 after which FCF is expected to grow at a constant 5% rate. BBB's WACC is 10%. (Draw a timeline to visualize the problem) Page 1 of 3 Prof. Xin (Shane) Gao FN215 Financial Management Fall 2018 a. How far away is the horizon date from today? What is BBB's horizon valuei? b. What is the firm's total market value today? c. Suppose BBB has $50 million of debt, $50 million of preferred stock and 10 million shares of stock outstanding. What is your estimate of the current price per share
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