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Dozier Corp is a fast-growing supplier of office products. Analysts project the following FCFs during the next 3 years after which FCF will grow at
Dozier Corp is a fast-growing supplier of office products. Analysts project the following FCFs during the next 3 years after which FCF will grow at a constant rate of 7%. Its weighted average cost of capital is 13%. a. What is the company's horizon value? b. What is the current value of operations? c. Suppose the company has $10 million in marketable securities, $100 million in debt, and 10 million shares of stock. What is the intrinsic price per share? 1 2 3 Year FCF ($ millions) -$20 $30 $40
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