Estimate the value or each share of common stock

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Venice Surf Co. expects to generate free cash flows of $2,153 million in 2016, $3,596 million in 2017, and $4,459 million in 2018. In addition, the terminal value at year-end 2018 of all free cash flows generated after 2018 is $36,277 million. The company has nonoperating assets of $4,665 million and nonoperating liabilities of $8,929 million and there are 950 million shares outstanding. Estimate the value (per share) or each share of common stock using the free cash flow information above, and assuming a discount rate of 13.93%. Present your answer to two decimal places (e.g., $20.00).

Reference no: EM131897173

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