Question: A stock analyst is using the free cash flow model to estimate the value of one share of WZZ Company common stock. The analyst completes

A stock analyst is using the free cash flow model to estimate the value of one share of WZZ Company common stock. The analyst completes the first five steps in the process and estimates the current value of the company to be $100,000,000. The analyst also gathers the following information:

WZZ's Cash Balance is $5,000,000 The value of WZZ's debt is $20,000,000 The value of WZZ's preferred stock is $10,000,000 WZZ paid a dividend in the current year of $5 per share There are 1.4 million shares of WZZ common stock outstanding

Complete the free cash flow model and estimate the value of one share of WZZ common stock.

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