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Can you work this question on a paper instead of excel please? Thank you in advance. A Jamaican company has a net free cash flow
Can you work this question on a paper instead of excel please? Thank you in advance.
A Jamaican company has a net free cash flow of $8 million and is expected to grow at 20% during the next 3 years and then grow at 7% thereafter. The company has debt of $120 million and 5,000,000 shares of outstanding common stock. The company pays no dividends and since it would like to retain its earnings, it is not expected to pay any dividends. What are the terminal and intrinsic values of the stock assuming the discount rate is 11%?
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