Question
Hello, Can I get help with this 2 questions. 1) Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash
Hello,
Can I get help with this 2 questions.
1) Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 5% rate. Dozier's weighted average cost of capital is WACC = 12%.Suppose Dozier has $20 million in marketable securities, $250 million in debt, and 10 million shares of stock. What is the intrinsic price per share?
Year Free cash flow ($ millions)
1) -10
2) $25
3 $50
2) Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 5% rate. Dozier's weighted average cost of capital is WACC = 12%. What is Dozier's terminal, or horizon, value?
Year Free cash flow ($ millions)
1) -10
2) $25
3 $50
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