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Feeling Good Corporation is a fast-growing supplier of organic food products in the nation. You are the financial manager of the company. Scott, a junior
Feeling Good Corporation is a fast-growing supplier of organic food products in the nation. You are the financial manager of the company. Scott, a junior financial analyst who works for you projects the following free cash flows during the next four years, after which FCF is expected to grow at a constant 5%. Feeling Good's weighted average cost of capital is 12%. Year 0 1 2 3 4 FCF ($ Million) -20 30 40 35 Suppose Feeling Good has $60 million marketable securities, $100 million in debt, and 10 million shares of stock. What is the intrinsic price per share? 33.67 35.04 42.21 46.09 50.74 47.97
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