Dozier corporation is a fast growing supplier of office


Question - Dozier Corporation is a fast growing supplier of office products.  Analysts project the following free cash flows during the next 3 years, after which FCF is expeted to grow at a constant 7% rate.  Doziers cost of capital is WACC=13%

Time 1 2 3

FCF -$20 $30 $40

a) What is Dozier's terminal, or horizon value?

b) What is the current value of operations for Dozier?

c) Suppose Dozier has $10 million in marketable securities, $100 million in debt and 10 million shares of stock. What is the price per share?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Dozier corporation is a fast growing supplier of office
Reference No:- TGS02611975

Now Priced at $25 (50% Discount)

Recommended (93%)

Rated (4.5/5)