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A) What is the terminal value at year 3? B) What is the value of the firm today? (in millions) C) Based on the number
A) What is the terminal value at year 3?
B) What is the value of the firm today? (in millions)
C) Based on the number of shares and debt position of Shaq Fu, what is their equity value per share?
Shaq Fu Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows during the next 3 years, after which FCF is expected to grow at a constant 5.00% rate. Shaq Fu's cost of capital is 12.00%. Shaq Fu has 8.00 million shares outstanding, and carries 93.00 million in debt. YEAR 1 2 3 FCF -$30.00 $34.00 $53.00 (All Free cash flows above are expressed in millions of dollars)Step by Step Solution
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