Question

A company is projected to have a free cash flow of $343 million next year, growing at a 4.6% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.4%. The company's cost of capital is 9.7%. The company owes $121 million to lenders and has $9 million in cash. If it has 271 million shares outstanding, what is your estimate for its stock price? Round to one decimal place.

Answer #1

A company is projected to have a free cash flow of $343 million
next year, growing at a 5.6% rate until the end of year 3. After
that, cash flows are expected to grow at a stable rate of 2.2%. The
company's cost of capital is 12.9%. The company owes $71 million to
lenders and has $17 million in cash. If it has 221 million shares
outstanding, what is your estimate for its stock price? Round to
one decimal place.

A company is projected to have a free cash flow of $400 million
next year, growing at a 5% rate until the end of year 3. After
that, cash flows are expected to grow at a stable rate of 2.5% in
perpetuity. The company's cost of capital is 8.0%. The company owes
$110 million to lenders and has $5 million in cash. If it has 250
million shares outstanding, what is your estimate for its stock
price? Round to one...

1. A company is projected to generate free cash flows of $159
million next year and $204 million at the end of year 2, after
which it is projected grow at a steady rate in perpetuity. The
company's cost of capital is 9.7%. It has $171 million worth of
debt and $51 million of cash. There are 27 million shares
outstanding. If the exit multiple for this company's free cash
flows (EV/FCFF) is 5.1, what's your estimate of the company's...

A company is projected to generate free cash flows of $150
million next year and $210 million at the end of year 2, after
which it is projected grow at a steady rate in perpetuity. The
company's cost of capital is 8.0%. It has $200 million worth of
debt and $40 million of cash. There are 30 million shares
outstanding. If the exit multiple for this company's free cash
flows (EV/FCFF) is 4.0, what's your estimate of the company's stock...

A company is projected to generate free cash flows of $46
million per year for the next two years, after which it is
projected grow at a steady rate in perpetuity. The company's cost
of capital is 11.6%. It has $23 million worth of debt and $7
million of cash. There are 13 million shares outstanding. If the
exit multiple for this company's free cash flows (EV/FCFF) is 14,
what's your estimate of the company's stock price? Round to one...

A company is projected to generate free cash flows of $121
million per year for the next 3 years (FCFF1, FCFF2 and FCFF3).
Thereafter, the cash flows are expected to grow at a 2.7% rate in
perpetuity. The company's cost of capital is 8.1%. What is your
estimate for its enterprise value? Answer in millions, rounded to
one decimal place (e.g., $213,456,789 = 213.5).

Question 2 A company is expected to generate free cashflows of
$60 million next year, projected to grow at a 5% annual rate until
the end of year 3, and then at a stable 2% rate in perpetuity
thereafter. You estimate that the company's cost of capital is 11%.
It has $250 million debt and $15 million cash. Number of shares
outstanding is 10 million. How much would you be willing to pay for
each share? Round to the nearest...

You are valuing a company that is projected to generate a free
cash flow of $10 million next year, growing at a stable 2% rate in
perpetuity thereafter. The company has $22 million of debt and $8.5
million of cash. Cost of capital is 11%. There are 5 million shares
outstanding. How much is each share worth according to your
valuation analysis?

You are valuing a company that is projected to generate a free
cash flow of $10 million next year, growing at a stable 3.0% rate
in perpetuity thereafter. The company has $22 million of debt and
$8.5 million of cash. Cost of capital is 10.0%. There are 50
million shares outstanding. How much is each share worth according
to your valuation analysis?
1.
$2.41
2.
$2.73
3.
$2.23
4.
$2.01
5.
$2.59

A company is projected to generate free cash flows of $85
million per year for the next two years, after which it is
projected grow at a steady rate in perpetuity. The company's cost
of capital is 11%. It has $250 million of debt and $12 million in
cash. There are 30 million shares outstanding. Comparable companies
trade at an average EV/FCFF multiple of 9. Using the exit multiple
method for terminal value and DCF for the rest, what is...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 12 minutes ago

asked 30 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago