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Suppose you can estimate the free cash flow for Hoosier Electronics for the next 3 years. You predict that FCF will be $56.00, $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 $56.00, $60.00, and $64.00 million respectively. After the third year, you believe that FCF's will grow forever at 5.00%. The firm's WACC is 11.00%. Currently, the book value of bonds is $194.00 million, the book value of notes payable is $52.00 million, and the book value of preferred stock is $35.00 million. If the firm has 35.00 million shares of common stock outstanding, what is the equity value per share.
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