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A company is expected to have free cash flow of $400,000 next year. Cash flows are expected to grow at 11% per year for the
A company is expected to have free cash flow of $400,000 next year. Cash flows are expected to grow at 11% per year for the next four years (years 2-5). After year 5, the free cash flow is projected to grow at 2% indefinitely. The firm currently has $1 million in debt, 200,000 shares outstanding, and a WACC of 9.5%.
What is the value of the firm?
What is the price per share of the companys stock?
Please answer in Excel.
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