A corp has never paid a dividend free cash flow is


A Corp has never paid a dividend. Free cash flow is projected to follow the timeline below.

After the third year, FCF is expected to grow at 8% annually. The WACC is 14%.

$M Year
1 2 3
-20 60 80

What is A's Terminal Value? and What is the current value of operations?

Suppose A has $5M in marketable securities, $200M in liabilities, and 20M shares of stock. What is A's share price?

 

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Finance Basics: A corp has never paid a dividend free cash flow is
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