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Dantzler Corporation is a fast - growing supplier of office products. Analysts project the following free cash flows ( FCFs ) during the next 3
Dantzler Corporation is a fastgrowing supplier of office products. Analysts project the following free cash flows FCFs during the next years, after which
FCF is expected to grow at a constant rate. Dantzler's WACC is
Year
FCF $ millions
a What is Dantzler's horizon, or continuing, value? Hint: Find the value of all free cash flows beyond Year discounted back to Year Enter your answer in
millions. For example, an answer of $ should be entered as Do not round intermediate calculations. Round your answer to two decimal
places.
b What is the firm's market value today? Assume that Dantzler has zero nonoperating assets. Enter your answer in millions. For example, an answer of
$ should be entered as Do not round intermediate calculations. Round your answer to two decimal places.
$
million
c Suppose Dantzler has $ million of debt and million shares of stock outstanding. What is your estimate of the current price per share? Write out
your answer completely. For example, million should be entered as Do not round intermediate calculations. Round your answer to the
nearest cent.
$
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