Question
A fast-growing manufacturer projects the following free cash flows (FCFs) in the next 3 years, after which the FCF will grow at a constant 7%
- A fast-growing manufacturer projects the following free cash flows (FCFs) in the next 3 years, after which the FCF will grow at a constant 7% rate. The companys WACC is 13%.
Year 0 1 2 3
FCF ($ millions) - $20 $30 $40
What is the companys value today? If the company has $100 million of debt and 10 million shares of common stock outstanding, what is the estimated current share price?
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
6th Edition
1260226786, 9781260226782
