Question
A company’s weighted average cost of capital is 12.1% per year and the market value of...
A company’s weighted average cost of capital is 12.1% per year
and the market value of its debt is $70.1 million. The company’s
free cash flow last year was $12.3 million and it is expected to
grow 30% per year for the next three years. Thereafter, the free
cash flow is expected to grow forever at a rate of 6.7% per year.
If the company has six million shares of common stock outstanding,
what is the value per share?
Please complete in excel and show answers and formula. Thank
you!
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