Finance-For-Fun Corporation (FFF) is expected to generate the following free cash flows over the next three years: .
Years
FCF
1
54.5
2
67.7
3
77.9
Thereafter, the free cash flows are expected to grow at the industry average of 3.7% per year. Using the discounted free cash flow model and a weighted average cost of capital of 13.9%:
Estimate the enterprise value of FFF.
If FFF has no excess cash, debt of $315 million, and 41 million shares outstanding, estimate its share price.
Jestion 3
C•.
Jestion 4
lestion 5
a. Estimate the enterprise value of FFF.
The enterprise value will be $
million. (Round to two decimal places.)
b. If FFF has no excess cash, debt of $315 million, and 41 million shares outstanding, estimate its share price.
The stock price per share will be $ (Round to the nearest cent.)