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Suppose you can estimate the free cash flow for Hoosier Electronics for the next 3 years....

Suppose you can estimate the free cash flow for Hoosier Electronics for the next 3 years. You predict that FCF will be $52.00, $57.00, and $64.00 million respectively. After the third year, you believe that FCF’s will grow forever at 6.00%. The firm’s WACC is 11.00%. Currently, the book value of bonds is $191.00 million, the book value of notes payable is $61.00 million, and the book value of preferred stock is $48.00 million. If the firm has 22.00 million shares of common stock outstanding, what is the equity value per share.

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jeff jeffy answered 1 year ago
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