Question: Based on the Equity Free Cash Flow Model, what is the price per common share? Year1 Rev = 630 FC = 120 VC = 200
Based on the Equity Free Cash Flow Model, what is the price per common share?
Year1
Rev = 630
FC = 120
VC = 200
Dep = 60
AINWC = -10
AIOLTA = -70
Int Exp = 35
Newly Issued Debt = 25
Principle repayments = 15
Market Value of the firm
Short-term debt = 200
Long-term debt = 600
Common Stock = 18/share
# of Shares = 100
Total = 2600
Cost of Equity (Rs) = .14
Tax Rate = .40
Growth Yr 1-5 = .12
Growth Yr 6+ = .05
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