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You have been assigned the task of using the corporate, or free cash flow, model to estimate Petry Corporations intrinsic value. The firms WACC is
You have been assigned the task of using the corporate, or free cash flow, model to estimate Petry Corporations intrinsic value. The firms WACC is 10.00%, its end-of-year free cash flow (FCF1) is expected to be $75.0 million, the FCFs are expected to grow at a constant rate of 5.00% a year in the future, the company has $200 million of long-term debt and preferred stock, and it has 30 million shares of common stock outstanding. What is the firms estimated intrinsic value per share of common stock?
a. $40.35
b. $41.82
c. $43.33
d. $44.85
e. $46.42
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