FIN 303 Spring 20182 Homework: Chapter 7 Homework Score: 0 of 10 pts P7-16 (similar to) 70f 8 (0 complete) HW Score: 0%, 0 of 20 pts Question Help Free cash flow valuation Nabor Industries is considering going public but is unsure of a fair offering price for the to make their own estimate of the firm's common stock value. The fim's CFO has gathered data for performing the valuation using the free cash flow valuation model. The firm's weighted average cost of capital is 13%, and it has $2,600,000 of debt at market value and $520,000 of preferred stock at its assumed market value. The estimated free cash flows over the next 5 years, 2016 through 2020, are given in the table, Beyond 2020 to infinity, the firm expects its free cash flow to grow by 6% annually. 68 a. Estimate the value of Nabor Industries entire company by using the free cash flow b. Use your finding in part a, along with the data provided above, to find Nabor Industries' common stock value. If the firm plans to issue 200,000 shares of common stock, what is its estimated value per share? a. The value of Nabor Industries' entire company is Round to the nearest dollar) 90 c Enter your answer in the answer box and then click Check Answer Clear All Check Answer 8 2 3 4. 5 6 FIN 303 Spring 20182 Homework: Chapter 7 Homework Score: 0 of 10 pts P7-16 (similar to) 70f 8 (0 complete) HW Score: 0%, 0 of 20 pts Question Help Free cash flow valuation Nabor Industries is considering going public but is unsure of a fair offering price for the to make their own estimate of the firm's common stock value. The fim's CFO has gathered data for performing the valuation using the free cash flow valuation model. The firm's weighted average cost of capital is 13%, and it has $2,600,000 of debt at market value and $520,000 of preferred stock at its assumed market value. The estimated free cash flows over the next 5 years, 2016 through 2020, are given in the table, Beyond 2020 to infinity, the firm expects its free cash flow to grow by 6% annually. 68 a. Estimate the value of Nabor Industries entire company by using the free cash flow b. Use your finding in part a, along with the data provided above, to find Nabor Industries' common stock value. If the firm plans to issue 200,000 shares of common stock, what is its estimated value per share? a. The value of Nabor Industries' entire company is Round to the nearest dollar) 90 c Enter your answer in the answer box and then click Check Answer Clear All Check Answer 8 2 3 4. 5 6
