Problem:
Snail corporation wants to purchase Bug corporation. The financial manager of Snail corporation forecasted the following free cash flows (FCFs) for Bug corporation for year 1-6 : $3.3mil, $3.6mil, $3.4mil, $4.2mil, $6.8mil, $7.2mil. The value of debt for Bug corporation is $30 mil, and the number of shares outstanding for Bug corporation is 2 mil. The after tax WACC is 10%. The present value of the post horizon period ( cash flows from year 7 onward) at year 6 is calculated as $100mil. Calculate the value per share for Bug corporation.