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What is dozier horizon or continuing

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Reference no: EM132582024

CORPORATE VALUATION

Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 7% rate. Dozier's WACC is 13%.

Year                    0           1             2            3

FCF ($ millions)    -       $20      $30          $40

Question a. What is Dozier's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.)

Question b. What is the firm's value today?

Question c. Suppose Dozier has $100 million of debt and 10 million shares of stock outstanding. What is your estimate of the current price per share?

Reference no: EM132582024

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