Question

Please refer to the financial statements provided in Problem 4.  You have forecasted Lunar Motivation Corporation (LMC)...

Please refer to the financial statements provided in Problem 4.  You have forecasted Lunar Motivation Corporation (LMC) free cash flow in 2020 to be $50.51 million, $450 million in 2021, 500 million in 2022, and 550 million in 2023.  After 2023, free cash flow will grow at a constant rate of 7 percent per year forever.  The company has a 14% WACC and 100 million shares of common stock. Please provide an estimate of the items below, including the stock price, using the free cash flow model.   Show your calculations

Value of Operations             ______

Total Corporate Value          ______

Value of Equity                      ______

Estimated Stock Price          ______

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