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Master Fins is a new seafood restaurant chain that is planning to issue shares of...

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Accounting

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Master Fins is a new seafood restaurant chain that is planning to issue shares of common stock for the very first time an initial public offering). You have carefully analyzed Master Fins' financial statements and have come up with the following projections: Free Cash Flow next year of $2 million; Free Cash Flow the following year of $2.5 million; After that, a constant growth rate of 4 percent per year forever. The required rate of return is 10 percent. The market value of the firm's debt is $3 million. Master Fins has 1.5 million shares of common stock outstanding. Use the Free Cash Flow approach to determine the appropriate price per share of Master Fins common stock

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