A privately held company is owned by a family 10 millions hares of stock. Free Cash Flow of this company is $20 million its WACC is 12% and FCF is expected
to grow at a constant annual rate of 7%. The company has holdings in marketable securities of $90 million. It is financed with $200 million of debt $250
million of book common quity. Please who work so I can see how you came up with the answer. Really looking to understand more so then getting an answer.
1. What is the value of operations?
2. What is the total coporate Value?
3. What is the intrinsic value of equity?
4. What is the intrinsic stock price per share?
5. What would be a fair offer price (per share) to this company? Explain.