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Analysts project that Company F will generate negative $20 million FCF at the end of this...

Analysts project that Company F will generate negative $20 million FCF at the end of this year, positive $30 million next year, and positive $40 million in year three. FCF is then expected to grow at a constant rate of 7% per year forever. The company has a wacc of 13%, $10 million in short-term investments, $100 million in debt, and 10 million shares of stock outstanding. What is the instrinsic stock price per share?

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Answer #1

Year Cash flows pv @ 13% -$20.00 0.88496 $30.00 0.78315 $40.00 0.69305 $713.33 (40*1.07)/(0.13-0.07) 0.69305 Present value of

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