Consider a company that is forecasted to generate free cash flows of $22 million next year...
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Consider a company that is forecasted to generate free cash flows of $22 million next year and $24 million the year after. After that, cash flows are projected to grow at a stable rate in perpetuity. The company's cost of capital is 11.5%. The company has $30 million in debt, $15 million of cash, and 27 million shares outstanding. Using an exit multiple for the company's free cash flows (EV/FCFF) of 18, how much is each share worth? Round to one decimal place. Consider a company that is forecasted to generate free cash flows of $22 million next year and $24 million the year after. After that, cash flows are projected to grow at a stable rate in perpetuity. The company's cost of capital is 11.5%. The company has $30 million in debt, $15 million of cash, and 27 million shares outstanding. Using an exit multiple for the company's free cash flows (EV/FCFF) of 18, how much is each share worth? Round to one decimal place.
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Calculate the value of each share using the exit multiple method E... View the full answer
Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
Posted Date:
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