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Answer ASAP pls The Big Dream Venture is considering going public and is looking to find the right stock price (intrinsic value). It is estimated
Answer ASAP pls
The Big Dream Venture is considering going public and is looking to find the right stock price (intrinsic value). It is estimated that their free cash flow will be 3 million dollars next year and it will be at a constant growth rate of 6% forever. The venture also owes 10 million dollars in debt. They also have 2 million dollars surplus cash. If the number of outstanding shares is 1 million and the appropriate cost of capital is 10%, what should be the share price apiece?
a) 30
b) 77
c) 300
d) 75
e) 67
f) 65
.
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