Apex Inc. issued $20 million in bonds and $5 million in preferred shares and $45 million in common shares. Apex Inc. will receive free cash flows of $ 5 million in year one, $5 million in year two, $25 million in year three, $40 million in year four, and $45 million in year five. The company will continue to operate and generate 2% growth to infinity. If the company’s WACC is 10%, How much is the Enterprise Value? How much is the value of the equity? It has 10 million shares outstanding, what is the price per share?

Answer rating: 100% (QA)

To calculate the enterprise value we need to find the present value of the free cash flows generated ... View the full answer