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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

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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 al Nabor have clecided to make their own estimate of the firm's common stock value. The firm's CFO has gathered data for parforming the valuation using the free cash flow valuation model. The firm's weighted average cost of capilal is 12%, and it has $2,720,000 of debt at market value and $540,000 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 5% 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 is5ue 200,000 shares of common stock, what is its estimated value per share? 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 al Nabor have clecided to make their own estimate of the firm's common stock value. The firm's CFO has gathered data for parforming the valuation using the free cash flow valuation model. The firm's weighted average cost of capilal is 12%, and it has $2,720,000 of debt at market value and $540,000 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 5% 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 is5ue 200,000 shares of common stock, what is its estimated value per share

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