Question

You must estimate the intrinsic value of IST Technologies’ stock. The end-of-year free cash flow (FCF1)...

You must estimate the intrinsic value of IST Technologies’ stock. The end-of-year free cash flow (FCF1) is expected to be $55.00 million, and it is expected to grow at a constant rate of 5.0% a year thereafter. The company’s WACC is 9.0%, it has $105.0 million of long-term debt plus preferred stock outstanding, and there are 20.0 million shares of common stock outstanding. What is the firm's estimated intrinsic value per share of common stock?

Homework Answers

Answer #1

So, the firm's estimated intrinsic value per share of common stock = $ 63.50 per share

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