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How much is each share of the following company worth using the DCF method? Free casf flow is forecasted to be $85 million per year
How much is each share of the following company worth using the DCF method? Free casf flow is forecasted to be $85 million per year for the next three years, expected to grow at a steady rate in perpetuity thereafter. Cost of capital is 10.5%. The company has $65 million if debt and $5 million in cash. There are 17 million shares outstanding. The average EV/FCFF multiple of comparable companies is 11.3.
A.) 53.8
B.) 29.0
C.).26.4
D.) 50.7
E.) 21.0
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