Question
Suppose you can estimate the free cash flow for Hoosier Electronics for the next 3 years. You predict that FCF will be $58.00, $60.00, and
Suppose you can estimate the free cash flow for Hoosier Electronics for the next 3 years. You predict that FCF will be $58.00, $60.00, and $60.00 million respectively. After the third year, you believe that FCFs will grow forever at 5.00%. The firms WACC is 11.00%. Currently, the book value of bonds is $219.00 million, the book value of notes payable is $58.00 million, and the book value of preferred stock is $41.00 million. If the firm has 34.00 million shares of common stock outstanding, what is the equity value per share. Round to 2 decimal places
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