Question
ABC Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF
ABC Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 5% rate. The WACC of the co. is 11%.
Time 0 1 2 3
FCF ($Millions) -11 17 45
1. What is ABC's corporation horizon, or continuing, value? 2. What is the firms value today? 3. Suppose ABC has $112.60 million of debt and 25 million shares of stock outstanding. What is your estimate of the current price per share?
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Bond Markets Analysis And Strategies
Authors: Frank J. Fabozzi
6th Edition
0131986430, 9780131986435
