Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant7% rate. Dantzler's WACC is 14%.Year0123FCF (Smillions)- $17$30$50The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.XOpen spreadsheeta. What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Round your answer to two decimal places. Enter youranswer in millions. For example, an answer of $13,550,000 should be entered as 13.55.Smillionb. What is the firm's value today? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not roundyour intermediate calculations.Smillionc. Suppose Dantzler has $92 million of debt and 19 million shares of stock outstanding. What is your estimate of the current price per share? Round your answer to two decimal places. Writeout your answer completely. For example, 0.00025 million should be entered as 250.

Here,FCF of Year 1 is -$17FCF of Year 2 is $30FCF of Year 3 is $50Growth Rate is 7%WACC is 14%

Answered: Dantzler Corporation is a fast-growing…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 10P

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