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Free cash now valuation. Nabor industries is considering going public but is unsure of a fair offering price for the compary. Before hiring an investment

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Free cash now valuation. Nabor industries is considering going public but is unsure of a fair offering price for the compary. Before hiring an investment banker to assist in making the public offering, managern at Noboc have decided to make their own estimaso of the firm's comman stock value. The firm's CFO has gatheced data for porforming the valuation using the free cash flow valuasion model. The simit weighted average cost of captal is 14% and it has $2,220,000 of debt at market value and $440,000 of preferred stock in ferms of market value. The estimated free cash flows over the noxt 5 yean, 1 through 5 , are given in the table, Aner year 5 , the firm expects its free cash flow to grow by 6% annuably. a. Estionate the value of Nabor industries' entice company by using the froe cash fow vatuation 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 10 issue 200,000 shares of comenon stock, what is is estimated value per share? Data table a. The value of Nabor industries' entre company is 5 (Round to the nf (Cick on the icon here of in order to copy the contents of the data table below into a spreadsheet)

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