Corporate valuation Dollars/shares in millions FCF FCF FCF Constant growth rate. WACC Market value of debt Common shares outstanding -$14.00 $29.00 $39.00 5.00% 12.00% $197.00 10 0 1 -$14.00 2 $129.00 3 $9.00 FCFS Horizon value Total FCF PV of FCFs to investors Firm value today Market value of equity, MV. Price per share, P. Formulas 0 1 -$14.00 2 $29.00 4 ENA FCFS Horizon value Total FCFs 3 39.00 NIA ENIA ENIA SN/A PV of FCFs to investors NIA EN/A NIA Firm value today NIA Market value of equity, MV Price per share, #NIA #N/A