You are valuing a company for possible acquisition. The target is expected to produce operating cash flow
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Question:
You are valuing a company for possible acquisition. The target is expected to produce operating cash flow of $ million and spend $ million on capex next year, paying $ million in taxes. The OCF and taxes and capex expected to grow by per year forever. The discount rate is
The firm has $ million face value of bonds outstanding. The bonds are currently trading at cents on the dollar.
With million shares outstanding, what is the value per share?
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