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Blitz Corp. has $40 million of debt and 3 million shares of common stock outstanding.The firm has $30 million of excess cash.An analyst has forecasted
Blitz Corp. has $40 million of debt and 3 million shares of common stock outstanding.The firm has $30 million of excess cash.An analyst has forecasted the following future Free Cash Flows (FCFs) for the firm:$12 million, 13 million, 14 million, and 15 million for years 1 (t=1), 2, 3, and 4, respectively.The firm and the FCFs will then grow at a constant 5% annual rate forever after year 4.Blitz has a weighted average cost of capital (WACC) of 10%.Estimate the Enterprise Value and the value (per share) of Blitz stock/equity?
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