You are valuing a company with free cash flows expected to grow at a stable 1.9% rate
Fantastic news! We've Found the answer you've been seeking!
Question:
You are valuing a company with free cash flows expected to grow at a stable 1.9% rate in perpetuity. Analysts are forecasting free cash flows of $39 million for next year (FCFF1). The company has $34 million of debt and $6 million of cash. Cost of capital is 12.9%. There are 14 million shares outstanding. How much is each share worth according to your valuation? Round to one decimal place.
Related Book For
Financial Management Theory and Practice
ISBN: 978-1305632295
15th edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
Posted Date: