Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are valuing a company with free cash flows expected to grow at a stable 1.9% rate in perpetuity. Analysts are forecasting free cash flows
You are valuing a company with free cash flows expected to grow at a stable 1.9% rate in perpetuity. Analysts are forecasting free cash flows of $39 million for next year (FCFF1). The company has $34 million of debt and $6 million of cash. Cost of capital is 12.9%. There are 14 million shares outstanding. How much is each share worth according to your valuation? Round to one decimal place.
You are valuing a company with free cash flows expected to grow at a stable 1.9% rate in perpetuity. Analysts are forecasting free cash flows of $39 million for next year (FCFF1). The company has $34 million of debt and $6 million of cash. Cost of capital is 12.9%. There are 14 million shares outstanding. How much is each share worth according to your valuation? Round to one decimal place.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started