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Ryan Enterprises forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 14.0%, and the FCFs are expected to
Ryan Enterprises forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 14.0%, and the FCFs are expected to continue growing at a 6.0% rate after Year 3. The company has $100 million of long-term debt and preferred stock, and it has 30 million shares of common stock outstanding. What is the firm's estimated intrinsic value per share of common stock? Year 1 FCF $25.0 Year 2 FCF $35 Year 3 FCF $55
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