Fcff valuation model to establish the value per share

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Net income is 300 million, depreciation is 70 million, capital expenditures are 120 million, investment in working capital is 30 million, interest expenses (before tax) are 40 million, and outstanding debt is 850 million. All accounting figures are for next year. There are 50 million outstanding shares, the weighted average cost of capital is 11%, the tax rate is 30%, and FCFF will grow at 5% annually forever. Use the FCFF valuation model to establish the value per share.

Reference no: EM132124374

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