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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 $60.00, $51.00, and
Suppose you can estimate the free cash flow for Hoosier Electronics for the next 3 years. You predict that FCF will be $60.00, $51.00, and $61.00 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 $184.00 million, the book value of notes payable is $63.00 million, and the book value of preferred stock is $31.00 million. If the firm has 24.00 million shares of common stock outstanding, what is the equity value per share.
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