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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 years, after which FCF
Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 5% rate. Dantzler's WACC is 10%. a. What is Dantzler's horizon, or continuing, value? Enter your answer in millions. For example, an answer of $13, 550,000 should be entered as 13.55. $ million b. What is the firm's value today? Enter your answer in millions. For example, an answer of $13, 550,000 should be entered as 13.55. Do not round your intermediate calculations. $ million c. Suppose Dantzler has $173 million of debt and 27 million shares of stock outstanding. What is your estimate of the current price per share? Write out your answer completely. For example, 0.00025 million should be entered as 250
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