Question
Flying Cow Aviation Inc.s free cash flows (FCFs) are expected to grow at a constant long-term growth rate (gL ) of 16% per year into
Flying Cow Aviation Inc.s free cash flows (FCFs) are expected to grow at a constant long-term growth rate (gL ) of 16% per year into the future. Next year, the company expects to generate a free cash flow of $7,000,000. The market value of Flying Cows outstanding debt and preferred stock is $45,000,000 and $25,000,000, respectively. Flying Cow has 1,500,000 shares of common stock outstanding, and its weighted average cost of capital (WACC) is 23%. Given the preceding information, complete
Given the preceding information, complete the adjacent table (rounding each value to the nearest whole dollar), and assuming that the firm has not had any nonoperating assets in its balance sheet.
Term | Value |
---|---|
Value of Operations |
|
Value of Firms Common Equity |
|
Value of Common Stock (per share) |
|
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