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Projected free cash flows (FCF): Year 1FCF=$10 million. Year 2FCF=$20 million. Year 3 FCF =$35 million FCF grows at constant rate of 5% after year
Projected free cash flows (FCF): Year 1FCF=$10 million. Year 2FCF=$20 million. Year 3 FCF =$35 million FCF grows at constant rate of 5% after year 3 . WACC =11% Short-term investments =$100 million Debt =$200 million Preferred stock =$50 million Number of shares =n=10 million Calculate 1. Value of Operations 2. Total Value of Company 3. Estimated Intrinsic Value of Equity 4. Estimated Intrinsic Stock Price per Share 5. PV of Horizon Value
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