Working on the valuation for an upcoming IPO

Assignment Help Financial Management

Reference no: EM131065333

You are working on the valuation for an upcoming IPO. The company that wants to sell its stock expects the following future free cash flows (FCF, in millions of dollars): -7 in year 1, 2 in year 2, 17 in year 3, and cash flows are expected to grow steadily at 4% after year 3. The discount rate for this company is 10.9%, and it plans to sell 7 million shares. What should be the price per share?

Reference no: EM131065333

Questions Cloud

Claim of discrimination against multi-state : Jane applies for a new position with Multi-State Corporation, Inc. After the initial application review and interview, an HR manager at Multi-State does an internet search on Jane and finds that she is active in a national gay and lesbian organizatio..

Two elements of communication you want to observe : Watch one of the following movies. (For plot summaries of films, see the webset of the Internet Movie Database at http://www.imdb.com. If you wish to suggest a different film, please present your idea to your instructor for approval immediately.)

Value creation from view point of manager for caterpillar : First being very specific clearly identify the underlined item or concept from the text, Additional Text Readings or lectures and then. Value creation from the view point of manager for Caterpillar?

Long-term financing : Long-Term Financing: As was mentioned in the chapter, new equity issues are generally only a small portion of all new issues. At the same time, companies continue to issue new debt. Why do companies tend to issue little new equity but continue to iss..

Working on the valuation for an upcoming IPO : You are working on the valuation for an upcoming IPO. The company that wants to sell its stock expects the following future free cash flows (FCF, in millions of dollars): -7 in year 1, 2 in year 2, 17 in year 3, and cash flows are expected to grow st..

What is the objective of the firm in corporate finance : What is the objective of the firm in corporate finance? What are investment and financing decisions? Discuss the four major conflicts that may occur with the objective of shareholder value maximization.

The following article from harvard business review : The following article from Harvard Business Review argues that good leaders reflect and learn from their reflections; they keep personal journals and write in them daily.

Cumulative abnormal returns : Cumulative Abnormal Returns: The following figures present the results of four cumulative abnormal returns (CAR) studies. Indicate whether the results of each study support, reject, or are inconclusive about the semistrong form of the efficient marke..

Design a payroll class with the fields : Write a constructor that initializes these fields as well as accessor and mutator methods - Demonstrate the class in a program that contains a Car object, and then calls the accelerate method five times.

User Account

All Pages