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Using the following timeline of FCF estimation to figure out the company's security price. Point: 2 Company llama is estimated to have FCF of
Using the following timeline of FCF estimation to figure out the company's security price. Point: 2 Company llama is estimated to have FCF of -12 Millions, -14 Millions, -25 Millions, and 40 Millions from year 1 to year 4. After that, its FCF is estimated to grow at at 8% per year starting with year 5. Year FCF (in $Millions) 1 -12 2 -14 3 -25 4 40 5 WACC Debt Cash # Shares Outstanding Company llama has $40 Millions in cash and $5 Millions in debt. It has 1 million shares of common Assuming its WACC is 15% What is its security value per share? -Your Answer: Your solution below:
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