We need to estimate the value per share of a corporation


We need to estimate the value per share of a corporation using a discounted free cash flow (FCF) approach and the following data: Debt: 50 millions; cash: 40 millions; shares outstanding: 40 millions; the year 1 FCF is 20 million and it's expected to grow at the rate of 10% until year 3 (so two years of 10% growth). and then to grow at a rate of 5% after year 3. If the weighted average cost of capital is 8%, what is the price per share today? No Excel is allowed.

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Financial Management: We need to estimate the value per share of a corporation
Reference No:- TGS02694203

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