Question

A company is projected to have a free cash flow of $343 million next year, growing...

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.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A company is projected to have a free cash flow of $343 million next year, growing...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT