Assume a corporation is expecting the following cash flows in the future: $-8 million in year...

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Assume a corporation is expecting the following cash flows inthe future: $-8 million in year 1, $11 million in year 2, $18million in year 3. After year 3, the cash flows are expected togrow at a rate of 6% forever. The discount rate is 14%, the firmhas debt totaling $42 million, and 9 million shares outstanding.What should be the price per share for this company?
Enter your answer in dollars, rounded to the nearest cent.

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Step1Calculation of total value of firm As per discounted cash flow method value of firm is the present value of cash flow Amount in million Year See Answer

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Assume a corporation is expecting the following cash flows inthe future: $-8 million in year 1, $11 million in year 2, $18million in year 3. After year 3, the cash flows are expected togrow at a rate of 6% forever. The discount rate is 14%, the firmhas debt totaling $42 million, and 9 million shares outstanding.What should be the price per share for this company?Enter your answer in dollars, rounded to the nearest cent.