You expect future free cash flow (FCF) of a company to grow at a contstant rate g. Given the FCF for the most recent year, the market value of debt, and the number of shares outstanding, what is the value for a share of common stock? FCFO $7,500,000 shares 1,000,000 6. 6.00% MVDebt $2,800,000 WACC 12.50% For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). I U S Paragraph v Arial 14px I. * O A a x' X, 8
You expect future free cash flow (FCF) of a company to grow at a contstant rate g. Given the FCF for the most recent year, the market value of debt, and the number of shares outstanding, what is the value for a share of common stock? FCFO $7,500,000 shares 1,000,000 6. 6.00% MVDebt $2,800,000 WACC 12.50% For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). I U S Paragraph v Arial 14px I. * O A a x' X, 8
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
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:You expect future free cash flow (FCF) of a company to grow at a contstant rate g. Given the FCF for the most recent year, the market value of debt, and the number of shares outstanding, what is the value for a share of common stock?
FCF0
$7,500,000
shares
1,000,000
g
6.00%
MVDebt
$2,800,000
WACC
12.50%
For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
BI U S
Paragraph
x? X,
Arial
14px
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