A company is projected to generate free cash flows of $100 million per year for the...

A company is projected to generate free cash flows of $100 million per year for the next 3 years (FCFF1, FCFF2 and FCFF3). Thereafter, the cash flows are expected to grow at a 3.0% rate in perpetuity. The company's cost of capital is 7.0%. What is your estimate for its enterprise value? Answer in millions, rounded to one decimal place (e.g., $213,456,789 = 213.5).

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jeff jeffy answered 2 years ago

A company is projected to generate free cash flows of $164 million per year for the...

A company is projected to generate free cash flows of $164 million per year for the next 3 years (FCFF1, FCFF2 and FCFF3). Thereafter, the cash flows are expected to grow at a 2.0% rate in perpetuity. The company's cost of capital is 10.2%. What is your estimate for its enterprise value? Answer in millions, rounded to one decimal place (e.g., $213,456,789 = 213.5).

A company is projected to generate free cash flows of $47 million per year for the...

A company is projected to generate free cash flows of $47 million per year for the next two years, after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is 11.2%. It has $24 million worth of debt and $6 million of cash. There are 14 million shares outstanding. If the exit multiple for this company's free cash flows (EV/FCFF) is 14, what's your estimate of the company's stock price? Round to one...

Company is projected to generate free cash flows of $179 million per year for the next...

Company is projected to generate free cash flows of $179 million per year for the next 3 years (FCFF1, FCFF2 and FCFF3). Thereafter, the cash flows are expected to grow at a 1.8% rate in perpetuity. The company's cost of capital is 10.9%. What is your estimate for its enterprise value? Answer in millions, rounded to one decimal place

1.A. A company is projected to generate free cash flows of $800 million per year for...

1.A. A company is projected to generate free cash flows of $800 million per year for the next 3 years (FCFF1, FCFF2 and FCFF3). Thereafter, the cash flows are expected to grow at a 1.5% rate in perpetuity. The company's cost of capital is 12.0%. The company owes $100 million to lenders and has $90 million in cash. If it has 150 million shares outstanding, what is your estimate for its stock price? Round to one decimal place 1.B. A...

Frank Martin Bread Company is projected to generate free cash flows of $80 million per year...

Frank Martin Bread Company is projected to generate free cash flows of $80 million per year for the next two years, after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is 11%. It has $250 million of debt and $12 million in cash. There are 30 million shares outstanding. Comparable companies trade at an average EV/FCFF multiple of 9. Using the exit multiple method for terminal value and DCF for the rest,...

A company is projected to generate free cash flows of $178 million next year and $191...

A company is projected to generate free cash flows of $178 million next year and $191 million at the end of year 2, after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is 13.6%. It has $107 million worth of debt and $77 million of cash. There are 21 million shares outstanding. If the exit multiple for this company's free cash flows (EV/FCFF) is 7.7, what's your estimate of the company's stock...

A company is projected to generate free cash flows of $171 million next year and $196...

A company is projected to generate free cash flows of $171 million next year and $196 million at the end of year 2, after which it is projected grow at a steady rate in perpetuity. The company’s cost of capital is 12.3%. It has $129 million worth of debt and $69 million of cash. There are 23 million shares outstanding. If the exit multiple for this company’s free cash flows (EV/FCFF) is 6.9, what’s your estimate of the company’s stock...

A company is forecasted to generate free cash flows of $23 million next year and $25...

A company is forecasted to generate free cash flows of $23 million next year and $25 million the year after. After that, cash flows are projected to grow at a stable rate in perpetuity. The company's cost of capital is 8.4%. The company has $63 million in debt, $19 million of cash, and 15 million shares outstanding. Using an exit multiple for the company's free cash flows (EV/FCFF) of 16, what's your estimate of the company's stock price?

A company is forecasted to generate free cash flows of $23 million next year and $28...

A company is forecasted to generate free cash flows of $23 million next year and $28 million the year after. After that, cash flows are projected to grow at a stable rate in perpetuity. The company's cost of capital is 12.3%. The company has $61 million in debt, $13 million of cash, and 28 million shares outstanding. Using an exit multiple for the company's free cash flows (EV/FCFF) of 19, what's your estimate of the company's stock price? a. 30.8...

MBX is a new firm that will generate free cash flows of $100 billion in year...

MBX is a new firm that will generate free cash flows of $100 billion in year 1 and growing at a rate of 5% a year thereafter. If the MBX’ cost of capital is 10% and it has neither debt nor cash then by issuing 100 million shares the price of MBX stock will be: a. $200 per share b. $10 per share c. $20 per share d. $100 per share

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