Question
Assume you have a company that has the following financials for fiscal year 2020 $760million in cash $648million in book value of debt $516 million
Assume you have a company that has the following financials for fiscal year 2020 $760million in cash $648million in book value of debt $516 million in market value of debt The company will generate a net income of $350 million and 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 -3% per year after 2023 If the firms weighted average cost of capital is 10% and the firm has 200 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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