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Problem Walk$-$Through

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 $7\%$ rate. Dantzler's wacc is $1$ I.

Year

FCF $($$ millions$)$

a$.$ What is Dantzler's horizon, or continulng, value? $($Hint: Find the value of all free cash fows beyond Year $3$ discounted back to Year $3.)$ Enter your answer in millions. For exarnple, an answer of $$13,550,000$ should be entered as $13$:$55.$ Do not round intermediate calculations. Round your answer to two decimal places.

$ $$ million

b$.$ What is the firm's market value today? Assume that Dantzler has zero non$-$operating assets. Enter your answer in millons. For example, an ans:mer of $$13,550,000$ should be entered as $13\mathrm{.}55.$ Do mot round intermediate calculations. Round your answer to two decimal places.

$ $$ rrillion

c$.$ Suppose Dantzler has $$44\mathrm{.}10$ millon of debt and $30$ million shares of stack outstanding. What is your estimate of the current price per share? Write out your ans $0\mathrm{.}00025$ million should be entered as $250.$ Do not round intermediate calculations. Round your answer to the nearest cent.

$ $$

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