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You are given the following financial data for Company A Marketable Securities $20 Notes Payable $75 Long-term Bonds $275 Preferred Stock $43 WACC 8.00% Number
You are given the following financial data for Company A
Marketable Securities | $20 |
Notes Payable | $75 |
Long-term Bonds | $275 |
Preferred Stock | $43 |
WACC | 8.00% |
Number of Shares of Stock | 35 |
You have estimated free cash flows of -30 for Year 1, 15 for Year 2, 60 for Year 3, and 63 for Year 4. After year 3, cash flows will continue growing at the same rate (i.e. at the same rate they grow from Year 3 to Year 4).
1. Calculate the Estimated Horizon Value
2. What is the estimated Value of Operations?
3. What is the Estimated value of Common Equity?
4. What is the Estimated Price Per Share?
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