Assume the following information for Sanford Industries, Inc: *Sanford expects to have the following free cash...
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Assume the following information for Sanford Industries, Inc: *Sanford expects to have the following free cash flows (FCF) in the next three years: Year 1: $9,500,000 Year 2: $8,200,000 Year 3: $10,750,000 *After Year 3, Sanford's FCF should grow at a rate of 4% in perpetuity *Sanford's Weighted Average Cost of Capital (WACC) is 10% *Sanford Currently has $50,000,000 in debt 22 *Sanford Currently has $50,000,000 in debt *Sanford Currently has 10,000,000 common shares outstanding Estimate the Per Share Value of Sanford's Common Stock Show all steps and use Excel best practices Assume the following information for Sanford Industries, Inc: *Sanford expects to have the following free cash flows (FCF) in the next three years: Year 1: $9,500,000 Year 2: $8,200,000 Year 3: $10,750,000 *After Year 3, Sanford's FCF should grow at a rate of 4% in perpetuity *Sanford's Weighted Average Cost of Capital (WACC) is 10% *Sanford Currently has $50,000,000 in debt 22 *Sanford Currently has $50,000,000 in debt *Sanford Currently has 10,000,000 common shares outstanding Estimate the Per Share Value of Sanford's Common Stock Show all steps and use Excel best practices
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To estimate the pershare value of Sanfords common stock we need to calculate the present value of it... View the full answer
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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