Question
A financial consultant has provided the following information for a startup company (LMN Inc.) Year Free Cash Flow Misc. Notes Year 1 $912,000 -Growth Rate
A financial consultant has provided the following information for a startup company (LMN Inc.)
| Year | Free Cash Flow | Misc. Notes |
| Year 1 | $912,000 | -Growth Rate beyond year #4 to be approximately 7% |
| Year 2 | $572,000 | -Cost of Capital is 13% |
| Year 3 | $283,947 | -The market value of all debt from the balance sheet is $0, no preferred stock outstanding |
| Year 4 | $1,034,343 | Total shares outstanding 37,000 |
5) Find the present value of year 1s cash flow.
6) Find the present value of year 2s cash flow.
7) Find the present value of year 3s cash flow.
8) Find the present value of year 4s cash flow.
9) Estimate the terminal value.
10) What is the value of the whole company? Value on a per share basis?
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Begin Investing In Real Estate With The Ultimate Guide
Authors: Tadahikol T. Nakamura
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