Wayne corporation is a growing distributor of electronic products. Analysts are forecasting the following free cash flow series
Year 0 0$
Year 1 -8$million
Year 2 18million $
Year 3 49$million
Beggining in year 3 though, the fcf starts growing at a constant rate of 5%. Tthe WACC is given at 10%.
A. what is the companys horizon value
B what is the firms overall value today
C if wayne has 90 million of debt but no preffered stock, with 22 million common shares outstanding, please calucalte the estimated price of its stock.