Consider a company that 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 9.1%. The company has
$63 million in debt, $14 million of cash, and 21 million shares
outstanding. Using an exit multiple for the company's free cash
flows (EV/FCFF) of 13, how much is each share worth? Round to one
decimal place.
Consider a company that is forecasted to generate free cash flows of $23 million next year and $28 million the year afte
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