What is doziers terminal or horizon value


Question: Dozier Corporation is a fast growing supplier of office products. Analysts project the following free cash flows during the next 3 years, after which FCF is expeted to grow at a constant 7% rate. Doziers cost of capital is WACC=13%

Time     1        2        3
FCF    -$20    $30    $40

a) What is Dozier's terminal, or horizon value?

b) What is the current value of operations for Dozier?

c) Suppose Dozier has $10 million in marketable securities, $100 million in debt and 10 million shares of stock. What is the price per share?

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