Question
Shaq Fu Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows during the next 3 years, after which FCF
Shaq Fu Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows during the next 3 years, after which FCF is expected to grow at a constant 7.00% rate. Shaq Fus cost of capital is 12.00%. Shaq Fu has 8.00 million shares outstanding, and carries 112.00 million in debt.
| YEAR | 1 | 2 | 3 |
|---|---|---|---|
| FCF | -$29.00 | $40.00 | $36.00 |
(All Free cash flows above are expressed in millions of dollars)
Based on the number of shares and debt position of Shaq Fu, what is their equity value per share?
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
7th Edition
013213683X, 978-0132136839
