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Question 2 [15 marks) Woodpark is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years,
Question 2 [15 marks) Woodpark is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 7% rate. Woodpark's weighted average cost of capital is WACC = 13%. Year 12 -R 20 R 30 3 Free Cash Flow (R millions) R 40 2.1. 2.2. 2.3. What is Woodpark's horizon value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3) What is the current value of operations for Woodpark? Suppose Woodpark has R10 million in marketable securities, R100 million in debt, and 10 million shares of stock. What is the intrinsic price per share
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