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An analyst is reviewing the following data with respect to York Co.: 5 million shares outstanding Market risk premium is 6% Debt to total capital
An analyst is reviewing the following data with respect to York Co.:
5 million shares outstanding
Market risk premium is 6%
Debt to total capital ratio is 30%
. Risk-free rate is 3%
.York Co beta is 0.92
Long term debt of $215 million has an interest cost of 7%
Tax rate is 40%
. Current free cash flow to the firm (FCFF) is $24 million
FCFF is expected to grow 21% over the next two years, 17% in the third year,
. And thereafter, grow at a constant rate of 3% .
What is best estimate the total value of the firm?
What is the WACC?
What is the FCFF per share for year 4?
What is the terminal Value?
What is the FCFF per share for year 3? What is the FCFF per share for year 2? What is the FCFF per share for year 1?
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