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Question content area top Part 1 Free cash flow valuation Nabor Industries is considering going public but is unsure of a fair offering price for
Question content area top
Part
Free cash flow valuationNabor 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 and it has $ comma comma of debt at market value and $ comma of preferred stock in terms of market value. The estimated free cash flows over the next years, through are given in the table, LOADING.... After year the firm expects its free cash flow to grow by annually.
aEstimate the value of Nabor Industries' entire company by using the free cash flow valuation model.
bUse your finding in part a along with the data provided above, to find Nabor Industries' common stock value.
cIf the firm plans to issue comma shares of common stock, what is its estimated value per share?
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