Jackson Inc is in significant financial trouble It reported operating losses of $20 million in the most recent year on revenues of $ 100 million The total book value of capital invested in the firm today is $190 million Cost of capital is 12 Assuming that the firm will revert back to health in 3 years, you have forecast revenues and after tax income (numbers are in millions are provided in the table below) Year 1 Year 2 Year 3 Revenue 150 160 180 Net Income 15 15 25 Depreciation 15 20 25 Cap Ex 5 25 40 Free Cash Flow (FCF) 5 10 10 Estimate the Net Present Value of Free Cash Flows over the first 3 years This Net Present Value is closest to Using the Free Cash Flow (FCF) in year 3, and assuming the firm will be able to grow at 2 5 and maintain the cost of capital it had in year 3, estimate the terminal value of the firm at the end of year 3 Jackson Inc has debt with market value of $70 mln If there are 20 million shares outstanding, estimate the price per share

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Question: Jackson Inc. is in significant financial trouble. It reported operating losses of $20 million in the most recent year on revenues of $ 100 million.

Jackson Inc. is in significant financial trouble. It reported operating losses of $20 million in the most recent year on revenues of $ 100 million. The total book value of capital invested in the firm today is $190 million. Cost of capital is 12%. Assuming that the firm will revert back to health in 3 years, you have forecast revenues and after-tax income (numbers are in millions are provided in the table below).

	Year 1	Year 2	Year 3
Revenue	150	160	180
Net Income	-15	15	25
Depreciation	15	20	25
Cap. Ex	5	25	40
Free Cash Flow (FCF)	-5	10	10

Estimate the Net Present Value of Free Cash Flows over the first 3 years. This Net Present Value is closest to ____.

Using the Free Cash Flow (FCF) in year 3, and assuming the firm will be able to grow at 2.5% and maintain the cost of capital it had in year 3, estimate the terminal value of the firm at the end of year 3

Jackson Inc. has debt with market value of $70 mln. If there are 20 million shares outstanding, estimate the price per share.

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