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AAA Company reported a free cash flow (FCFO) of $10 million at t=0. Analysts project its future FCFs will grow at a constant rate of
AAA Company reported a free cash flow (FCFO) of $10 million at t=0. Analysts project its future FCFs will grow at a constant rate of 3% per year. AAA'S WACC is 12%. (Draw a timeline to visualize the problem. Use dashes "---".) 1. What are AAA's FCFs in Year 1,,2 and 3? 2. What is AAA's total market value (MVO) today? 3. Suppose AAA has $20 million of debt, $12 million of preferred stock and 10 million shares of common stock outstanding. What is your estimate of AAA's current intrinsic value per share
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