Question
Gul Dukat Corp. is expected to have free cash flow (FCF) of $8 million in year 1, $5 million in year 2, $9 million in
Gul Dukat Corp. is expected to have free cash flow (FCF) of $8 million in year 1, $5 million in year 2, $9 million in year 3, and $6 million in year 4. After that, growth in FCF is expected to be 3 percent per year. Gul Dukat has cash of $5 million, liabilities of $2 million, and 10 million shares outstanding. (Do not round intermediate calculations. Round your final answer to two decimal places.)
Estimate the enterprise value today of Gul Dukat Corp. assuming a WACC of 15 percent.
EV = $ _____ million
What should be the stock price today of Gul Dukat Corp.?
Price = $ ______ per share
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