Question
Happy Giraffe Elevator Company is expected to generate a free cash flow of $24,000,000 this year (FCF1FCF1), and the FCF is expected to grow at
Happy Giraffe Elevator Company is expected to generate a free cash flow of $24,000,000 this year (FCF1FCF1), and the FCF is expected to grow at a rate of 17.00% over the next two years (FCF2FCF2 and FCF3FCF3). After the third year, however, the company's FCFs are expected to grow at a constant rate of 4.00% per year, which will last forever (FCF4FCF4 and on). If Happy Giraffes weighted average cost of capital (WACC) is 11.00%, then the company's current total firm value should be._____________
(Note: Round the results of your intermediate calculations and your final answer to the nearest whole dollar.)
Happy Giraffes debt has a market value of $148,867,787, and the company has no preferred stock in its capital structure. If Happy Giraffe has 7,500,000 shares of common stock outstanding, then the estimated intrinsic value per share of common stock is_______ per share.
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