You have been asked to calculate the price of a firm using


You have been asked to calculate the price of a firm using free cash flow evaluation. Last year XYX Company has Free Cash Flow of $12 million. You expect the cash flows to grow at 10% for the next two years, then at 9% for the following two years and 6% thereafter. The WACC (required rate of return is 8.5% and the firm’s tax rate is 40%, what is the value of the firm? If the market value of the debt is $350 million and the number of share outstanding is 10 million, what is the price per share of the firm?

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