Question
The following information is available for a company, Indooroopilly Ltd. Cost of equity = 12% Weighted average cost of capital (WACC) = 10% Terminal growth
The following information is available for a company, Indooroopilly Ltd.
Cost of equity = 12%
Weighted average cost of capital (WACC) = 10%
Terminal growth rate = 5%
Market Capitalisation = $ 96m
Number of shares outstanding = 6 m
Net financial obligation (NFO) at the beginning of FY2023 = $ 15m
It is estimated that Indooroopilly Ltd will generate free cash flows of $ 3.3m in FY 2023 and $ 3.63m in FY2024 respectively. After FY 2024, free cash flows are expected to grow at a constant rate forever.
What is the terminal value of the enterprise for Indooroopilly Ltd at the end of FY2024 in millions of dollars?
What is the total enterprise value of Indooroopilly Ltd in million dollars at the beginning of FY2023 in millions of dollars?
What is the value of equity per share of Indooroopilly Ltd in dollars at the beginning of FY2023 in dollars?
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