Question: . . O Gamma Technologies (GT) is a privately held developer of advanced security systems based in Miami. As part of your business development strategy,

 . . O Gamma Technologies (GT) is a privately held developer

. . O Gamma Technologies (GT) is a privately held developer of advanced security systems based in Miami. As part of your business development strategy, in late 2020 you initiate discussions with GT founder about the possibility of acquiring the business at the end of 2020. Using a discounted FCF approach and the following data: Debt: $27 million Excess cash: $103 million Shares outstanding: 50 million Expected FCF in 2021: $43 million (this is FCFF for year 1) Expected FCF in 2022: $56 million (this is FCFF year 1 x(1+g) - use this FCFF to calculate the TV) Note: The company only has 2 CFs: year 1 + TV at the end of year 1 Future FCF growth rate beyond 2022: 4% Weighted-average cost of capital: 9.4% Estimate GT Enterprise value: $ million (no decimals) . . . 0 Estimate GT Equity value: $ million Estimate GT Value per share: $ (round to two decimals)

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