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Problem 11-7 Corporate Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCF5) during the next 3
Problem 11-7 Corporate Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCF5) during the next 3 years, after which FCF is expected to grow at a constant 6% rate. Dozier?s weighted average cost of capital is WACC 10%, a. What is Dozier?s terminal, or horizon, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.). Enter your answer in millions, For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places. b. What is the current value of operations for Dozier? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places. c. Suppose Dozier has $10 million in marketable securities, $100 million in debt, and 15 million shares of stock, What is the price per share? Round your answer to the nearest cent
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