Reed Corporation is a fast growing supply firm. Free Cash flows are as follows:
Year 1: -$20m Year 2: $30m year 3: $40m
After 3 years free cash flows are expected to grow ata constant 7%, The WACC is 13%
a) Calculate the horizon value: _________
b) What is the current value of operations: _________
c) Suppose Reed Corporation has $10m in marketable securities, $100m in debt, and 10 million shares of stock.
What is the intrinsic price per share? ________