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Corporate finance

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My subject is not listed. Looking for help with Corporate Finance, university level. ( 2nd year)

The question is as follows:

Snail corporation wants to purchase Bug corporation. The financial manager of Snail corporation forecasted the following free cash flows (FCFs) for Bug corporation for year 1-6 : $3.3mil, $3.6mil, $3.4mil, $4.2mil, $6.8mil, $7.2mil. The value of debt for Bug corporation is $30 mil, and the number of shares outstanding for Bug corporation is 2 mil. The after tax WACC is 10%. The present value of the post horizon period ( cash flows from year 7 onward) at year 6 is calculated as $100mil. Calculate the value per share for Bug corporation.
(32 marks)

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Response helps in explaining corporate finance.

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My subject is not listed. Looking for help with Corporate Finance, university level. ( 2nd year)

The question is as follows:

Snail corporation wants to purchase Bug corporation. The financial manager of Snail corporation forecasted the following free cash flows (FCFs) ...

Purchase this Solution


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