Question: please show work and dont put it in excel Find the share value for a company with the following information: Free cash flow 2021 is
Find the share value for a company with the following information: Free cash flow 2021 is expected to be $90,00 Free cash low in 2022 is expected to be $95,000 Free cash flow in 2023 is expected to be $100,000 Estimated growth rate of cash flows beyond 2023 - 2.75% The company's WACC is 9.5% and they have $0.5mm of debt The company has 50,000 shares outstanding They plan to pay quarterly dividends of $.25. $.30, and $.25 over each of the next 3 years, with the dividend increasing by 3% annually thereafter. a) What is the share value using the free cash flow valuation method? b) What is the share value using the dividend growth model
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