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Panda Industries Inc. has $2,942,811 in preferred equity and its outstanding debt has a value of $3,488,054. The firm's WACC is 10.04%. Use the DCF
Panda Industries Inc. has $2,942,811 in preferred equity and its outstanding debt has a value of $3,488,054. The firm's WACC is 10.04%. Use the DCF valuation model with the expected FCFs shown below; year 1 represents one year from today and so on. The company expects to grow at a 3.6% rate after Year 5. Rounding to the nearest penny, what is the value of common equity? | |
Peri | Free Cash Flow |
Year 1 | $1,167,687 |
Year 2 | $1,360,353 |
Year 3 | $1,839,925 |
Year 4 | $2,706,969 |
Year 5 | $3,527,853 |
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