Labrador technologies Inc. plans to become public soon. The current owners need to know the value of each share of commo

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Labrador Technologies Inc Plans To Become Public Soon The Current Owners Need To Know The Value Of Each Share Of Commo 1 (82.37 KiB) Viewed 18 times

Labrador technologies Inc. plans to become public soon. The current owners need to know the value of each share of common equity so they price their shares correctly. The WACC for this firm is 16.00% and there are 99,148 common shares outstanding. The firm has $1,386,696 in preferred equity and its outstanding debt has a market value of $3,384,244. 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 2.9% rate after Year 5. Rounding to the nearest penny, what is the value of each share of common stock? Free Cash Flow Year 1 $755,984 Year 2 $1,504,101 Year 3 $2,166,605 Year 4 $2,626,037 Year 5 $3,209,137 Period