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Roko Corp is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF
Roko Corp 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 6% rate. Dozier's weighted average cost of capital is WACC = 10%.
Year | |||
1 | 2 | 3 | |
Free cash flow ($ millions) | -$48 | $61 | $185 |
A. What is the firm's market value today?
B. Suppose Roko has $144.6 million in debt, $25.4 million in preferred stock, and 40 million shares of common stock outstanding. What is the current price per share?
please show full work not just final answer
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