Calculate present value of $1,000 bond with 9% coupon and quarterly interest payments. The bond has 15 years to maturity and 10.56% yield to maturity.
Free Cash Flow Valuation Model for Equity Pym Tech has been growing continuously over several years. There free cash flows forecast in given below. Year (t) Free Cash Flows? (FCFt)
2019 800,000
2020 950,000
2021 1,250,000
2022 2,150,000
2023 3,120,000
After 2023 the growth rate of FCF stabilizes to 9%. The weighted average cost of capital is 11%. Market value of all debt for Pym Tech is 32,000,000. Market value of preference shares is 5,000,000. Pym Tech has 1,000,000 shares outstanding. The current price of Pym Tech shares is $61.
Free Cash Flows in 2024
Value of firm in 2023
Value of firm today
Value of Equity today
Value of Per share (of common stock) today
Is the share? over/under valued
Recommendation for the stock