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Panda Industries Inc. has a WACC of 10.25% and 97,370 common shares outstanding. The firm has $2,483,217 in preferred equity and outstanding debt of $1,388,080.
Panda Industries Inc. has a WACC of 10.25% and 97,370 common shares outstanding. The firm has $2,483,217 in preferred equity and outstanding debt of $1,388,080. 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 3.4% rate after Year 5. Rounding to the nearest penny, what is the value of each share of common stock?
| Period | Free Cash Flow |
| Year 1 | $1,362,106 |
| Year 2 | $1,522,834 |
| Year 3 | $1,552,713 |
| Year 4 | $1,902,347 |
| Year 5 | $2,937,504 |
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