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Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows during the next 3 years, after which FCF is

Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows during the next 3 years, after which FCF is expected to grow at a constant 7.40% rate. Dozier's WACC is 11.40%.

Year

0

1

2

3

FCF ($ millions)

10

20

30

a. What is Dozier's horizon, or continuing, value?

b. What is the firm's value today?

c. Suppose Dozier has $200 million of debt and 100 million shares of stock outstanding. What is your estimate of the current price per share?

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