Intro

It is December 2023. Google has offered to buy your internet startup. The Google negotiators and you both agree on the following expectations.

Year	Expected project cash flow (end of year)
2024	120,000
2025	180,000
2026	270,000
2027	360,000
2028	450,000

After 2028, cash flows are expected to grow by 4% per year. Based on the riskiness of your industry, you think that your weighted average cost of capital is 16%.

You have bank loans worth $400,000 outstanding.

Part 1

What is the horizon value, i.e., the present value of all free cash flows from 2029 to infinity expressed in 2028-dollars?

Part 2

What is the total value of the company?

Part 3

What is the intrinsic value per share of common stock if you have 100,000 shares outstanding?