TGN Corporation generated FCF of $1,200,000 in the most recently completed year. FCF is expected to grow a 7% this year, 6% in year 2 and 5% in year 3. Beginning in year 4, FCF will become constant at...


TGN Corporation generated FCF of $1,200,000 in the most recently completed year.  FCF is expected to grow a 7% this year, 6% in year 2 and 5% in year 3.  Beginning in year 4, FCF will become constant at 4%.  The company has $2,500,000 of debt, $900,000 of preferred stock, and 500,000 common shares outstanding.  With a required return of 15%, what is a share of TGN's common stock worth today?



Jun 04, 2022
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