A company is projected to generate free cash flows of $176 million next year and $193...

  

Transcribed Image Text:

A company is projected to generate free cash flows of $176 million next year and $193 million at the end of year 2, after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is 13.1%. It has $114 million worth of debt and $74 million of cash. There are 21 million shares outstanding. If the exit multiple for this company's free cash flows (EV/FCFF) is 7.4, what's your estimate of the company's stock price? Round to one decimal place. Type your numeric answer and submit A company is projected to generate free cash flows of $176 million next year and $193 million at the end of year 2, after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is 13.1%. It has $114 million worth of debt and $74 million of cash. There are 21 million shares outstanding. If the exit multiple for this company's free cash flows (EV/FCFF) is 7.4, what's your estimate of the company's stock price? Round to one decimal place. Type your numeric answer and submit

Answer rating: 100% (QA)

Terminal value of the company Exit multiple FCFF in year 2 74 193 million 142820 million Ent... View the full answer