Free cash flow valuation Nabor Industries is considering going public but is unsure of a fair offering price for the company. Before hiring an investment banker to assist in making the public offering, managers at Nabor have decided to make their own estimate of the firm's common stock value. The firm'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 $2,760,000 of debt at market value and $550,000 of preferred stock in terms of market value. The estimated free cash flows over the next 5 years, 2020 through 2024, are given in the table, Beyond 2024 to infinity, the firm expects its free cash flow to grow by 6% annually. a. Estimate the value of Nabor Industries' entire company by using the free cash flow valuation model. b. Use your finding in part a, along with the data provided above, to find Nabor Industries' common stock value. c. If the firm plans to iasue 200,000 shares of common stock, what is its estimated value por share? a. The value of Nabor Industries' entire company is $ (Round to the nearest dollar.) abor Industries is considering going public but is unsure of a fair offering ave decided to make their own estimate of the firm's common stock value St of capital is 13%, and it has $2,760,000 of debt at market value and $5 ! 4 , are given in the table, Beyond 2024 to infinity, the firm expects its f Data table (Click on the icon located on the top-right comer of the data table below in copy its contents into a spreadsheet.) Free cash flow valuation Nabor Industries is considering going publio but is unsure of a fair offering price for the company. Before hiring an investmont banker to assist in making offering. managers at Nabor have decided to make their own estimate of the firm's common stock value. The firm's CFO has gathered data for performing the valuation using the free valuation model. The firm's weighted average cost of capital is 13%, and it has $2,760,000 of debt at market value and $550,000 of preferred stock in terms of market value. The estimated free cash ficws next 5 years, 2020 through 2024, are given in the table. Boyond 2024 to infinity, the firm expects its free cash flow to grow by 6% annualy. a. Estimate the value of Nabor Industries' entire compary by using the free cash fow valuation model, b. Use your finding in part a; along with the data provided above, to find Nabor Industries' common stock valiue. c. It the firm plans to issue 200,000 shares of common stock, what is its estimated value per thare? a. The value of Nabor industries' entire company is 1 (Round to the nearest dolar,)
