Question
Question 10: Dantzler Corporation is a fast-growing company supplier of office products. Analysts project the following FCF during the next 5 years: -$11; -$5; $1;
Question 10: Dantzler Corporation is a fast-growing company supplier of office products. Analysts project the following FCF during the next 5 years: -$11; -$5; $1; $21; $55. After which the FCF are expected to grow at a 5% constant rate. Dantzlers WACC is 10%.
What is Dantzler horizon value?
What is the present value of the free cash flows project during the next 5 years?
What is the firms total value?
Assume the market value of debt and preferred stocks to be $312 million. Dantzler has 20 million shares outstanding. What is your estimate of the current price per share?
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