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 6.00% rate. Shaq Fus cost of capital is 13.00%. Shaq Fu has 9.00 million shares outstanding, and carries 122.00 million in debt.
| YEAR | 1 | 2 | 3 |
|---|---|---|---|
| FCF | -$24.00 | $39.00 | $47.00 |
(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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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
