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Part $1$

Free cash flow valuation$$Nabor Industries is considering going public but is unsure of a fair offering price for the company. Before hiring an investment banker to assist in making the public$$ offering, managers at Nabor have decided to make their own estimate of the$$ firm's common stock value. The$$ firm's CFO has gathered data for performing the valuation using the free cash flow valuation model.

The$$ firm's weighted average cost of capital is $15\%,$ and it has $ $1$ comma $890$ comma $000$ of debt at market value and $ $380$ comma $000$ of preferred stock in terms of market value. The estimated free cash flows over the next $5$ years, $2020$ through $2024,$ are given in the$$ table, LOADING.... Beyond $2024$ to$$ infinity, the firm expects its free cash flow to grow by $5\%$ annually.

a$.$Estimate the value of Nabor$$ Industries' entire company by using the free cash flow valuation model.

b$.$Use your finding in part a$,$ along with the data provided$$ above, to find Nabor$$ Industries' common stock value.

c$.$If the firm plans to issue $200$ comma $000$ shares of common$$ stock, what is its estimated value per$$ share?

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Part $1$

a$.$The value of Nabor$$ Industries' entire company is $$$

$$

enter your response here.$($Round to the nearest$$ dollar.$)$

$2020$ $$280,000$

$2021$ $$340,000$

$2022$ $$410,000$

$2023$ $$450,000$

$2024$ $$480,000$