Question
Assume that you have a company that has the following financials for fiscal year 2020 300 million in cash 600 million in book value of
Assume that you have a company that has the following financials for fiscal year 2020
300 million in cash
600 million in book value of debt
500 million in market value of debt
The company is expected to generate a free cash flow of 200 million in 2021. The growth rates of the free cash flows will be 4% in 2022, 2% in 2023, and -3% per year after 2023. If the firms weighted average cost of capital is 10% and the firm has 100 million shares outstanding in 2020, then after its 2020 annual report is released to the public the firms equity value per share is___$
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