Stock Price per Share Assignment | Homework For You
June 8th, 2020
Financial Management
Please show formula and get the calculation in detail.
Russell Industries retains all of its earnings and does not pay a dividend. A major hedge fund is interested in buying Russell’s stock. The hedge fund manager estimates the free cash flow over the next 4 years will be $3mm, $6mm, $10mm, and $12mm. After the 4th year, the free cash flow is expected to grow at 5%. Russell’s WACC is 12%, its debt is $40mm, and it has 10 million shares of common stock. What is the firm’s market value? What is the Terminal value? What is the stock price per share?Get Finance homework help today