Corporate valuation Dollars/shares in millions FCF1 -$24.00 FCF2 $34.00 FCF3 $49.00 Constant growth rate, gn 4.00% WACC 10.00% Market value of debt $197.00 Common shares outstanding 16 0 1 2 3 4 FCFs -$24.00 $34.00 $49.00 Horizon value Total FCFs PV of FCFs to investors Firm value today Market value of equity, MVEquity Price per share, P0 Formulas 0 1 2 3 4 FCFs -$24.00 $34.00 $49.00 #N/A Horizon value #N/A Total FCFs #N/A #N/A #N/A PV of FCFs to investors #N/A #N/A #N/A Firm value today #N/A Market value of equity, MVEquity #N/A Price per share, P0 #N/A