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 (63.35 KiB) Viewed 13 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 65,518 common shares outstanding. The firm has $1,635,091 in preferred equity and its outstanding debt has a market value of $3,272,701. 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 2.1% rate after Year 5. Rounding to the nearest penny, what is the value of each share of common stock? Free Cash Flow Year 1 $1,312,930 Year 2 $1,282,298 Year 3 $1,764,472 Year 4 $2,473,860 Year 5 $3,538,140 Period