Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The information below applies to Orange, Inc., a company that is looking to sell. Estimate the value of the whole company, its equity and the

The information below applies to Orange, Inc., a company that is looking to sell. Estimate the value of the whole company, its equity and the price per share as of today (12/31/2021). The discount rate is 9.4%.- FCF expected in 2022: $41 million, and in 2023: $58 million.

- FCF growth rate beyond 2023 (in perpetuity): 5%

- Excess cash: $100 million, Debt: $23 million

- It has 50 millions shares outstanding.

Find the following at the end of 2021:

A. equity value

B. Value per share

C Enterprise value

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Cases In Healthcare Finance

Authors: George H. Pink, Paula H. Song

7th Edition

1640553177, 978-1640553170

More Books

Students also viewed these Finance questions

Question

create a user account using root@wrk 1

Answered: 1 week ago

Question

Describe forecasting requirements.

Answered: 1 week ago