You are valuing a company that is projected to generate a free cash flow of $10 million

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You are valuing a company that is projected to generate a free cash flow of $10 million next year, growing at a stable 2% rate in perpetuity thereafter. The company has $22 million of debt and $8.5 million of cash. Cost of capital is 11%. There are 5 million shares outstanding. How much is each share worth according to your valuation analysis?

a. $14.7b. $15.5c. $16.3d. $19.5e. $25.9

Posted Date: May 13, 2024 06:15 AM

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You are valuing a company that is projected to generate a free cash flow of $10 million

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Free cash flow next year 10 million Stable growth rate thereafter 2 Cost ... View the full answer

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