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JayerHomework.aspx?homeworkid=5791064218 questionId=9&flushed=true&edd 62322818.centerwinyes FIN-450-ETR300A-20200908.15.1220 Homework: Homework 3 Jelen jackson & 1 10/04/20 10:58 PM Score: 0 of 1 pt Save 10 of 10 (9 complete)

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JayerHomework.aspx?homeworkid=5791064218 questionId=9&flushed=true&edd 62322818.centerwinyes FIN-450-ETR300A-20200908.15.1220 Homework: Homework 3 Jelen jackson & 1 10/04/20 10:58 PM Score: 0 of 1 pt Save 10 of 10 (9 complete) P7-17 (similar to) HW Score: 77 42%, 7.74 of 10 pts Free cash flow valuation Nabor Industries is considering going public but is unsure of a fair offering price for the company Before ring an investment barber to assist in making the public offering, managers at Nabor have decided to make their own estimate of the firm's common stock value. The firm's CFO has gwhered data for performing the valuation using the free cash flow valuation model The firm's weighted average cost of capital is 14%, and it has $2.320,000 of debt at market value and 5460,000 of prefetted stock in terms of market value the estimated free cash flows over the next 5 years, 2020 through 2024, are given in the table, Beyond 2024 to infinity, the form expects is free cash flow to grow by 5% annually a. Estimate the value of Nabor Industries' entire company by using the free cash flow valuation model b. Use your finding in part a, along with the data provided above to find Nabor Industries' common stock value c. If the firm plans to issue 200,000 shares of common stock, what is its estimated value per share? (Round to the nearest dollar) a. The value of Nabor Industries' entire company is $ til i Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year (t) 2020 2021 2022 2023 2024 Free cash flow (FCF) B $280,000 $360,000 $410,000 $490,000 $540,000 Print Done

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