the present value of all the expected future free cash flow
the present value of all the expected future free cash flow of your firm is $320 million. the firm has $170 million of debt, and a cash balance of $30 million. If there are 13 million shares outstanding, what is the price of each share of this firm?
Solution
Share price = present value of cash flows/shares outstanding
Share price = 320/13
Share price = 24.62
