Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The forecast for Global Exports free cash flows for next year is provided in the table below. Selected Financial Information Global Exports Inc. ($000s) Last

The forecast for Global Exports free cash flows for next year is provided in the table below. Selected Financial Information Global Exports Inc. ($000s) Last Year Next Year Operating Cash Flow 74,230 78,076 Net Working Capital -12,240 -13,460 CAPEX 8,720 15,400 Debt 80,100 100,200 Shares Outstanding 10,000 10,000 Assume that free cash flow is paid at the end of each year and we are at the beginning of next year. Last years values are for the year end yesterday. Analysts expect Global Exports cash flow to grow at 3% in perpetuity. The WACC for Global is 11%. What is the fair price for Global Exports shares today? Responses $62.37 $62.37 $69.85 $69.85 $73.27 $73.27 $71.86

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions