Free cash flow model to estimate corporation intrinsic value

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You have been assigned the task of using the free cash flow model to estimate ABC Corporation's intrinsic value. ABC’s WACC is 10.00%, its end-of-year free cash flow (FCF) is expected to be $150.0 million, the FCFs are expected to grow at a constant rate of 6.00% a year in the future, the company has $200 million of long-term debt plus preferred stock, and it has 50 million shares of common stock outstanding. What is ABC's estimated intrinsic value per share of common stock?

Reference no: EM131560835

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