The cash flow for the firm's project is -$40 million in year 0 and $19 million in
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The cash flow for the firm's project is -$40 million in year 0 and $19 million in years 1-4. After year 4, the FCF is expected to grow at a constant rate of 0.020. The firm's discount rate is 0.068. If cash is $4.9 million, the market value of the firm's debt is $16.4 million, and the number of shares outstanding is 5.0 million, estimate the share price using the Discounted free cash flow model.
Related Book For
Intermediate Financial Management
ISBN: 978-1285850030
12th edition
Authors: Eugene F. Brigham, Phillip R. Daves
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