Valuing the firm Year 1 2 3 Free cash flow for the next 3 years $2,527,674.14...

Valuing the firm	Year	1	2	3
Free cash flow for the next 3 years		$2,527,674.14	$2,584,518.99	$2,648,952.93
Weighted average cost of capital, WACC	16%
Long-term growth rate of FCFs, g (since year 4)	4%
Debt	$3,000,000
Number of shares	1,000,000
Initial cash and marketable securities	$460,000

Terminal value
Enterprise value
Total asset value
Equity value
Equity value per share

If the stock is currently traded at $20.50 per share, how would you trade?

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jeff jeffy answered 10 months ago

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