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What is the estimated intrinsic value per share of common stock?

You must estimate the intrinsic value of Tsetseko Technologies' stock. Tsetseko's end-of-year free cash flow (FCF) is expected to be $17.50 million, and it is expected to grow at a constant rate of 7.00% a year thereafter. The company's WACC is 10.00%. Tsetseko has $125.00 million of long-term debt plus preferred stock, and there are 15.00 million shares of common stock outstanding. What is Tsetseko's estimated intrinsic value per share of common stock?

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Hi,

Please look at the requirements of the question. as per the requirement I have calculated the value of firm using free cash flows and WACC. As the value of ...

Solution Summary

This solution provides calculations for the value of the firm using free cash flows and WACC. Explaination for the calculations is provided in 121 words.

$2.19