Question
Widget Inc. is expected to have the following free cash flows: Year 1 2 3 4 5 FCF $Millions 22 27 32 36 38 After
- Widget Inc. is expected to have the following free cash flows:
| Year | 1 | 2 | 3 | 4 | 5 |
| FCF $Millions | 22 | 27 | 32 | 36 | 38 |
After then, the free cash flows are expected to grow at the industry average of 5% per year. Using the discounted free cash flow model and the weighted average cost of capital of 10%:
a. Estimate Widget Inc. enterprise value
b. If Widget Inc. has 10 million in cash, 3 million in debt, and 10 million shares outstanding what is their estimated share price?
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Robonomics Prepare Today For The Jobless Economy Of Tomorrow
Authors: John Crews
1st Edition
1530910463, 978-1530910465
