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 ______
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
Get Answers For Free
Most questions answered within 1 hours.