You want to estimate the value per share of a corporation


You want to estimate the value per share of a corporation using a discounted Free Cash Flow (FCF) approach and the following data: Debt: $50 million; Cash: $40 million; Shares Outstanding: 40 million; the year 1 FCF is $20 million and it is 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?

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Financial Management: You want to estimate the value per share of a corporation
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