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What is your estimate of its value per share

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Reference no: EM133073336

Question - Suppose analysts expect Monarch Inc to generate the following free cash flows over the next five years:

Year

1

2

3

4

5

FCF ($ millions)

25

28

32

37

40

After year 5, you estimate that Monarch's FCFs will grow at 5 percent per year. Its weighted average cost of capital (or WACC) is 13%. It has $200 million of debt and 8 million shares of stock outstanding. What is your estimate of its value per share?

Reference no: EM133073336

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