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company has free cash flow of $120m last tear. investors belueve cahs flow will grow by...

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Finance

company has free cash flow of $120m last tear. investors beluevecahs flow will grow by 20% this year, 12% year 2, 6% annulythereafter. company has $1b in cash , $750 in debt, $500m isprefered stock. if common stock is 12%. wacc is 8% and has 10mshares outatanding . what is price per share of common stock?

Answer & Explanation Solved by verified expert
3.7 Ratings (581 Votes)
WACC 800 Year Previous year FCF FCF growth rate FCF current year Horizon value Total Value Discount factor Discounted value 1 120 2000 144 144 108 1333333    See Answer
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company has free cash flow of $120m last tear. investors beluevecahs flow will grow by 20% this year, 12% year 2, 6% annulythereafter. company has $1b in cash , $750 in debt, $500m isprefered stock. if common stock is 12%. wacc is 8% and has 10mshares outatanding . what is price per share of common stock?

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