Question
what is FCF at the end of year 2? ABC companys current FCF is $2,000,000, it will grown at 25% for the first 4 years
what is FCF at the end of year 2?
ABC companys current FCF is $2,000,000, it will grown at 25% for the first 4 years and back to a steady growth rate 7% after 4 years. The WACC is 10%, outstanding shares is 4,000,000. Please use FCF model to estimate the value of their stock. Assume all FCFs happen at the end period.
Current FCF | 2,000,000 |
Anticipated growth rate, years 1-4 | 25% |
WACC | 10% |
Long-term growth rate, after year 4 | 7% |
Number of shares outstanding | 4,000,000 |
B) What is the terminal value at the end of year 4?
c) What is the forecast stock price per share
please be specific with A,B AND C ANSWER
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