Find value of colorado inc per share using a discounted fcf

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Question 1: Colorado Inc. is a privately held developer of advanced security systems based in Denver, CO. As part of your business development strategy, in late 2019, you initiated discussions with Colorado Inc's founder about the possibility of acquiring the business. Estimate the value of Colorado Inc per share using a discounted FCF approach and the following data:

Debt: $30 Million

Excess Cash: $110 Million

Shares Outstanding: 50 Million

Expected FCF in 2020: $45 Million

Expected FCF in 2021: $50 Million

Future FCF growth rate beyond 2021: 5%

Weighted-average cost of capital: 9.4%

Reference no: EM132545148

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