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Question Help 7-16 (similar to) Free cash flow valuation Nabor Industries is considering going public but is unsure of a fair offering price for the

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Question Help 7-16 (similar to) 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 o capital is 12%, and it has $2.360,000 of debt at market value and $470,000 o preferred stock at its assumed market value. The estirmated free ash fows over the next S years 2016 through 2020, are given in the table E3, Beyond 2020 to infinity,the firm expectsits free cast fow to grow by 4% annually a. Estimate the value of Nabor Industries' entire company by using the free cash flow valoation 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 200,000 shares of common stock, what is its estimated value per share? a. The value of Nabor Industries' entire company is s(Round to the nearest dolla)

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