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Intro Majong Inc. forecasts that it will have the free cash flows shown below. The free cash flows are expected to grow by 3% per
Intro Majong Inc. forecasts that it will have the free cash flows shown below. The free cash flows are expected to grow by 3% per year after year 3. Year 1 2 3 FCF ($ million) -20 48 54 The weighted average cost of capital is 9%. The firm has $51 million of debt and 10 million shares outstanding. Attempt 1/1 for 10 pts. Part 1 What is Majong's horizon value (in $ million)? 927 Saved Save - Attempt 1/1 for 10 pts. Part 2 What is the firm value today (in $ million)? 780 Saved Save Part 3 Attempt 1/1 for 10 pts. What is a good estimate of Majong's intrinsic value per share? 0+ decimals Save
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