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Current value of operations for dozier

**Task1**. Dozier Corporation is a rapid growing supplier of office products. Analysts project the following free cash flows (FCFs) throughout the upcoming 3 years, after which FCF is anticipated to grow at a stable 8% rate. Dozier's weighted average cost of capital is WACC = 13%.

Year

1 2 3

Free cash flow ($ millions) -$20 $30 $40

**Question1**. What is Dozier's horizon, or terminal, value? (Hint: Find all the value of all free cash flows beyond Year three discounted back to Year three.)

**Question2**. What is current value of operations for Dozier?

**Question3**. Assume that Dozier has $10 million in marketable securities, $100 million in debt, and 10 million shares of stock. What is intrinsic price per share?

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