Solution-Firm estimated intrinsic value per share-kosm inc

Firm estimated intrinsic value per share-kosm inc

Reference no: EM132705047

Kosm Inc. forecasts a positive Free Cash Flow for the coming year, with FCF1 = $10,000,000, and it expects a growth rate of 30% for the next two years. After Year 3, FCF is expected to grow at a constant rate of 4% forever. The Weighted Average Cost of Capital (WACC) is 11%, and the company has $65,000,000 of long-term debt (the remainder is comprised of common equity) and 10.0 million shares of common stock outstanding. What is the firm's estimated intrinsic value per share of common stock?

Reference no: EM132705047

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Firm estimated intrinsic value per share-kosm inc

Reference no: EM132705047

Reference no: EM132705047

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