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Labrador technologies Inc. plans to become public soon. The current owners need to know the value of each share of common equity so they price
Labrador technologies Inc. plans to become public soon. The current owners need to know the value of each share of common equity so they price their shares correctly. The WACC for this firm is 10.84% and there are 57,131 common shares outstanding. The firm has $1,425,522 in preferred equity and its outstanding debt has a market value of $2,970,399. For this example assume the current assets are zero. Use the DCF valuation model based on the expected FCFs shown below; year 1 represents one year from today and so on. The company expects to grow at a 2.2% rate after Year 5. Rounding to the nearest penny, what is the value of each share of common stock
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