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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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