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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 at Nabox 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 tree cash flow valuation model The firm's weighted average cost of capital is 15%, and it has 51.520,000 of debt at market value and 5300,000 of preferred stock at issued market value. The estimated free cash flows over the next years, 2016 through 2020. are given in the table. Beyond 2020 to infinity, the firm expects its free cash flow to grow by 4% annually Estimate the value of Nabor Industries entre company by using the free cash flow valuation model b. Use your finding in part along with the data provided above, to find Nabor industries common stock value c. If the firm plans to sue 200.000 shares of common stock what is its estimated value por share? The value of Nabor Industries' entire company is Round to the nearest dolar) b. The value of Nabor Industries common stock (Round to the newest dotat) c. If the firm plans to issue 200 000 shares of common stock the estimated value per share is Round to the rest Cent) 000 of debt at market value and $300,000 of preferred stock at its assumed market value. Data Table - Year (1) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Free cash flow (FCA) 2016 $230,000 2017 $280.000 2018 $350,000 2019 $380.000 2020 $420,000 Print Done 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 Nabox 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 tree cash flow valuation model The firm's weighted average cost of capital is 15%, and it has 51.520,000 of debt at market value and 5300,000 of preferred stock at issued market value. The estimated free cash flows over the next years, 2016 through 2020. are given in the table. Beyond 2020 to infinity, the firm expects its free cash flow to grow by 4% annually Estimate the value of Nabor Industries entre company by using the free cash flow valuation model b. Use your finding in part along with the data provided above, to find Nabor industries common stock value c. If the firm plans to sue 200.000 shares of common stock what is its estimated value por share? The value of Nabor Industries' entire company is Round to the nearest dolar) b. The value of Nabor Industries common stock (Round to the newest dotat) c. If the firm plans to issue 200 000 shares of common stock the estimated value per share is Round to the rest Cent) 000 of debt at market value and $300,000 of preferred stock at its assumed market value. Data Table - Year (1) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Free cash flow (FCA) 2016 $230,000 2017 $280.000 2018 $350,000 2019 $380.000 2020 $420,000 Print Done

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