What is the companys horizon value-firms overall value today

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Reference no: EM131355207

Wayne corporation is a growing distributor of electronic products. Analysts are forecasting the following free cash flow series

Year 0 0$

Year 1 -8$million

Year 2 18million $

Year 3 49$million

Beggining in year 3 though, the fcf starts growing at a constant rate of 5%. Tthe WACC is given at 10%.

A. what is the companys horizon value

B what is the firms overall value today

C if wayne has 90 million of debt but no preffered stock, with 22 million common shares outstanding, please calucalte the estimated price of its stock.

Reference no: EM131355207

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