Coroporate Valuation.
Dantzler Corporation is a fast growing supplier of office products.
Analysts project the followinf free has folows (FCFs) during the next 3 years.
FCF (Millions) year 1=-$11 million 2 =$17 milion 3 = 45 million
witch FCFs is expected to grow at a constant 5% rate. Dantzler's WACC is 11%.
What is Dantzler's horison, or continuing value (Hint: find the value of all free cash flows beyond year 3, discounted bact to year 3)
What is the forms value today?
Suppose Dantzler had $112.60 million in debt and 25 million shares of stock outstanding.
What is your estimate of the current price per share/
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