Question 13 Labrador technologies Inc. plans to become public soon. The current owners would like to know the value of e

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Question 13 Labrador Technologies Inc Plans To Become Public Soon The Current Owners Would Like To Know The Value Of E 1 (74.11 KiB) Viewed 12 times

Question 13 Labrador technologies Inc. plans to become public soon. The current owners would like to know the value of each share of common equity so they price their shares correctly for potential investors. The WACC for this firm is 10.88% and there are 60,324 common shares outstanding. The firm has outstanding debt with a market value of $4,410,090 and has no preferred equity. Use the DCF valuation model based on the expected FCFs shown below; year 1 represents one year from today and so on. The company expects to grow at a 2.2% rate after Year 5. Rounding to the nearest penny, what is the value of each share of common stock? Period Year 1 Year 2 Year 3 Year 4 Year 5 4 pts Free Cash Flow $1,048,695 $1,094,459 $2,238,028 $2,745,892 $2,321,360