Question
You must estimate the intrinsic value of Shark Technologies' stock. The end-of-year free cash flow (FCF1) is expected to expected to be $24.50million, and it
You must estimate the intrinsic value of Shark Technologies' stock. The end-of-year free cash flow (FCF1) is expected to expected to be $24.50million, and it is expected to grow at a constant rate of 7.0% of a year thereafter. The company's WACC is 10%, it has $125.0million of long-term debt plus preferred stock outstanding, there are 15.0million shares of common stock outstanding Assume the firm has zero non-operating assets. What is the firm's estimated intrinsic value per share of common stock? Explain.
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Authors: Alan Giambattista, Betty Richardson, Robert Richardson
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