What is the firms estimated intrinsic value per share of


You must estimate the intrinsic value of Mobile Technologies' stock. The end-of-year free cash flow is expected to be $5 million for the first two years and $27 million for year 3, and it is expected to grow at a constant rate of 7.0% a year thereafter. The company's WACC is 10.0%, it has $125.0 million of long-term debt plus preferred stock outstanding, and there are 15.0 million shares of common stock outstanding. What is the firm's estimated intrinsic value per share of common stock?

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Financial Management: What is the firms estimated intrinsic value per share of
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