Question: The tables below present expected free cash flow related data for XYZ for Year 1 and selected balance sheet data as of Year 0. XYZ

The tables below present expected free cash flow related data for XYZ for Year 1 and selected balance sheet data as of Year 0. XYZ has reached the steady state growth phase and XYZs WACC is 8%.

Year 0 Data

Debt

4,000

Shares outstanding

400

Year 1 Data

NOPLAT

4,500

Free Cash Flow

1,200

CAPEX

130

You expect that XYZ would grow at 2.0% per year in perpetuity. What is XYZs intrinsic value per share.

A.

67.5
B.

40
C.

75
D.

50

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