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home / study / business / finance / finance questions and answers / you have been assigned the task of using the corporate or free cash flow model to estimate ...

Question: You have been assigned the task of using the corporate or free cash flow model to estimate Petry ...

you have been assigned the task of using the corporate or free cash flow model to estimate Petry Corporation's intrinsic value. the firm's WACC is 10.00%, its end of year free cash flow is expected to be at $70 million, the FCFs are expected to grow at a constant rate of 5.00% a year in the future. the company has $200 million of long term debt and preferred stock. and it has 30 million shares of common stock. what is the firms' estimated intrinsic value per share?

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