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Free cash flow valuation Nabor Industries is considering going public but is unsure of a fare 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 fare offering price for the company Before hiring an investment banker to assist in making the public ofering managers at Nato have decided to make their own estimate of the firm's common stock value. The's CFO has gathered data for performing the valuation using the tree cash flow valuation model The Sim's weighted average cost of capital is 15%, and it has 51.520 000 of debt at market value and $300.000 of preferred stock at its assumed market value. The estimated cash flows over the next 5 years 2016 through 2020, are given in the table Beyond 2020 to Infinity, the firm expects is free cash flow to grow by anually a. Estimate the value of Nabor Industries entre company by using the tree cash fow 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 issue 200.000 shares of common stock. what is its estimated value per share? a. The value of Nabor Indiesentre company is found to the nearest dolar) b. The value of Nabor industries' common stock is $ (Round to the nearest dolar) c. It the templars to be 200.000 shares of common stock the estimated value per shares ) Round to the nearest cant) 3 of 4 (2 complete) ng public but is unsure of a fair offering price for the company. Before hiring an investment banker to a alue. The firm's CFO has gathered data for performing the valuation using the free cash flow valuation mo 1,520,000 of debt at market value and $300,000 of preferred stock at its assumed market value. The es med * Data Table . ng til e. mat is nd to (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) d to t ne est Year (1) 2016 2017 2018 2019 2020 Free cash flow (FCF) $230,000 $280,000 $350,000 $380,000 $420,000 Print Done

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