Question: Year 0 1 2 3 ....... ....... ....... ....... ....... ....... ....... ....... FCF ($ millions) ....... ....... ....... ....... ....... ....... ....... ...... -
| Year | 0 | 1 | 2 | 3 | ||||
| ....... | ....... | ....... | ....... | ....... | ....... | ....... | ....... | |
| FCF ($ millions) | ....... | ....... | ....... | ....... | ....... | ....... | ....... | ...... |
| - $15 | $27 | $56 | ||||||
The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
Open spreadsheet
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What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55.
$ fill in the blank 2 million
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What is the firm's value today? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round your intermediate calculations.
$ fill in the blank 3 million
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Suppose Dantzler has $43 million of debt and 13 million shares of stock outstanding. What is your estimate of the current price per share? Round your answer to two decimal places. Write out your answer completely. For example, 0.00025 million should be entered as 250.
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