What is the current value of operations for Dozier

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Reference no: EM132820639

Question - 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 weighted average cost of capital is WACC = 15%.

Year 1 2 3

Free cash flow (millions of dollars) - $20 $30 $40

What is Dozier's horizon value?

What is the current value of operations for Dozier? Do not round intermediate calculations.

Suppose Dozier has $10 million in marketable securities, $100 million in debt, and 10 million shares of stock. What is the intrinsic price per share? Do not round intermediate calculations.

Reference no: EM132820639

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