**Dantzler Corporation Financial Analysis**Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) over the next 3 years, after which FCF is expected to grow at a constant 5% rate. Dantzler's Weighted Average Cost of Capital (WACC) is 13%.**Free Cash Flow Projections:**- **Year 0:** Initial- **Year 1:** -$12 million- **Year 2:** $20 million- **Year 3:** $60 million**Analysis Questions:**a. **Horizon Value Calculation:** - What is Dantzler's horizon, or continuing, value? - Hint: Calculate the value of all free cash flows beyond Year 3, discounted back to Year 3. - Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. - Do not round intermediate calculations. Round your answer to two decimal places. - **Answer box:** $ [___] millionb. **Firm's Market Value Today:** - Assume that Dantzler has zero nonoperating assets. - Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. - Do not round intermediate calculations. Round your answer to two decimal places. - **Answer box:** $ [___] millionc. **Current Price per Share:** - Suppose Dantzler has $91.50 million of debt and 14 million shares of stock outstanding. - Estimate the current price per share. - Write out your answer completely. For example, 0.00025 million should be entered as 250. - Do not round intermediate calculations. Round your answer to the nearest cent. - **Answer box:** $ [___] **Graph Explanation:**- The diagram presents a timeline showing projected FCF for three years: negative $12 million in Year 1, positive $20 million in Year 2, and positive $60 million in Year 3. This helps visualize cash flow progression over time.

The value of company can be found as the present value of free cash flow taken on WACC as weighted…

Answered: Dantzler Corporation is a fast-growing…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

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