TGN Corporation generated FCF of $1,200,000 in the most recently completed year. FCF is expected to...
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TGN Corporation generated FCF of $1,200,000 in the most recently completed year. FCF is expected to grow a 7% this year, 6% in year 2 and 5% in year 3. Beginning in year 4, FCF will become constant at 4%. The company has $2,500,000 of debt, $900,000 of preferred stock, and 500,000 common shares outstanding. With a required return of 15%, what is a share of TGN's common stock worth today? TGN Corporation generated FCF of $1,200,000 in the most recently completed year. FCF is expected to grow a 7% this year, 6% in year 2 and 5% in year 3. Beginning in year 4, FCF will become constant at 4%. The company has $2,500,000 of debt, $900,000 of preferred stock, and 500,000 common shares outstanding. With a required return of 15%, what is a share of TGN's common stock worth today?
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Answer rating: 100% (QA)
To calculate the value of TGN Corporations common stock we need to use the discounted cash flow DCF ... View the full answer
Related Book For
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher
Posted Date:
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