Question

Use the below information to calculate a company’s equity value per share: Use discounted cash flow...

Use the below information to calculate a company’s equity value per share:

Use discounted cash flow analysis (5 year).

ABC Co has weighted average cost of capital of 12%.

Net debt of $229 (in millions).

Perpetuity growth rate of 1.85%

Outstanding shares $210 million

Cash Flow projections:

2000

2001

2002

2003

2004

Unlevered Cash Flow

196.55

201

257.34

294.18

301.15

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