You were recently asked to determine the intrinsic value of JBI Stock. Based on your estimate the following free cash flows: Year 1 Negative $10 million Year 2 Positive $11.6 million Year 3 Positive $17.5 million Year 4 Positive $25.1 million You anticipate that after year 4 the company will grow annually by 5%. Based on the risk profiles you would like to get a return on this investment of 9%. The company currently has 5 million shares outstanding. What is the value of the stock based on this data?

You were recently asked to determine the intrinsic value of JBI Stock. Based on your estimate the following free cash flows: Year 1 Negative $10 million Year 2 Positive $11.6 million Year 3 Positive $17.5 million Year 4 Positive $25.1 million You anticipate that after year 4 the company will grow annually by 5%. Based on the risk profiles you would like to get a return on this investment of 9%. The company currently has 5 million shares outstanding. What is the value of the stock based on this data?

Name: You were recently asked to determine the intrinsic value of JBI Stock
Uploaded: 2024-03-20T06:51:32.000Z
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Description: You were recently asked to determine the intrinsic value of JBI Stock. Based on your research, youestimate the following free cash flows:Year 1 Negative $10 millionYear 2 Positive $11.6 millionYear 3 Positive $17.5 millionYear 4 Positive $25.1 milli

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 27P

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