You are valuing a company with free cash flows expected to grow at a stable 1.9% rate in perpetuity. Analysts are forecasting free cash flows of $39 million for next year (FCFF1). The company has $34 million of debt and $6 million of cash. Cost of capital is 12.9%. There are 14 million shares outstanding. How much is each share worth according to your valuation? Round to one decimal place.

Answer rating: 100% (QA)

To value the company and find the worth of each share we can use the Gordon Growth Model a... View the full answer