CORPORATE VALUATION Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash...

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CORPORATE VALUATION Dantzler Corporation is a fast-growingsupplier of office products. Analysts project the following freecash flows (FCFs) during the next 3 years, after which FCF isexpected to grow at a constant 8% rate. Dantzler's WACC is 16%.Year 0 1 2 3 ....... ....... ....... ....... ....... .............. ....... ....... ....... ....... ....... ....... .............. ...... FCF ($ millions) - $23 $24 $57 What is Dantzler'shorizon, or continuing, value? (Hint: Find the value of all freecash flows beyond Year 3 discounted back to Year 3.) Round youranswer to two decimal places. Enter your answer in millions. Forexample, an answer of $13,550,000 should be entered as 13.55. $million What is the firm's value today? Round your answer to twodecimal places. Enter your answer in millions. For example, ananswer of $13,550,000 should be entered as 13.55. Do not round yourintermediate calculations. $ million Suppose Dantzler has $133million of debt and 18 million shares of stock outstanding. What isyour estimate of the current price per share? Round your answer totwo decimal places. Write out your answer completely. For example,0.00025 million should be entered as 250. $

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4.0 Ratings (675 Votes)

aDantlers Horizon or Continuing Value Free cash flow in year 3 FCF3 57 Million Growth Rate g 8 per year Weighted Average Cost of capital WACC See Answer

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CORPORATE VALUATION Dantzler Corporation is a fast-growingsupplier of office products. Analysts project the following freecash flows (FCFs) during the next 3 years, after which FCF isexpected to grow at a constant 8% rate. Dantzler's WACC is 16%.Year 0 1 2 3 ....... ....... ....... ....... ....... .............. ....... ....... ....... ....... ....... ....... .............. ...... FCF ($ millions) - $23 $24 $57 What is Dantzler'shorizon, or continuing, value? (Hint: Find the value of all freecash flows beyond Year 3 discounted back to Year 3.) Round youranswer to two decimal places. Enter your answer in millions. Forexample, an answer of $13,550,000 should be entered as 13.55. $million What is the firm's value today? Round your answer to twodecimal places. Enter your answer in millions. For example, ananswer of $13,550,000 should be entered as 13.55. Do not round yourintermediate calculations. $ million Suppose Dantzler has $133million of debt and 18 million shares of stock outstanding. What isyour estimate of the current price per share? Round your answer totwo decimal places. Write out your answer completely. For example,0.00025 million should be entered as 250. $