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value of a share of common stock

Based on some information I need some guidance on how to figure out what the value of a share of common stock is:

After-tax operating income=$500 million
Depreciation expense=$100 million
Capital expenditures=$200 million
No change in net working capital
Free cash flow is expected to grow by 6% per year
Cost of equity is 14%
WACC is 10%
Market value of debt is $3 billion
The company has 200 million shares of common stock outstanding

Solution Preview

Based on some information I need some guidance on how to figure out what the value of a share of common stock is:

After-tax operating income=$500 million
Depreciation expense=$100 million
Capital expenditures=$200 million
No change in net working capital
Free cash flow is expected to grow ...

Solution Summary

This explains the steps to find out value of a share of common stock with the help of an example

$2.19