Use the free cash flow valuation method

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Use the free cash flow valuation method to find the value per share for the following firm: A firm has just reported free cash flow to the firm (FCFF) for the last year as having been $65 Million. This amount is expected to grow at a rate of 2.5% per year for the foreseeable future. In addition, the firm’s WACC is estimated to be 7%. The firm has 10 Million shares outstanding. Finally, the firm has previously issued $400 Million in debt, but the current market value of this debt now appears to be $450 Million, given that interest rates have declined.

Reference no: EM131070499

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