Estimate the value per share or each share of common stock


Venice Surf Co. expects to generate free cash flows of $2,593 million in 2016, $3,213 million in 2017, and $4,997 million in 2018. In addition, the terminal value at year-end 2018 of all free cash flows generated after 2018 is $36,881 million. The company has nonoperating assets of $4,985 million and nonoperating liabilities of $8,307 million and there are 950 million shares outstanding. Estimate the value (per share) or each share of common stock using the free cash flow information above, and assuming a discount rate of 12.56%. Present your answer to two decimal places (e.g., $20.00).

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Estimate the value per share or each share of common stock
Reference No:- TGS02712552

Expected delivery within 24 Hours