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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