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IDX Technologies is a privately held developer of advanced security systems based in Chicago. As part of your business development? strategy, in late 2013 you initiate discussions with? IDX's founder about the possibility of acquiring the business at the end of 2013. Estimate the value of IDX per share using a discounted FCF approach and the following? data:

?Debt: $37 million

Excess? cash: $115 million

Shares? outstanding: $50 million

Expected FCF in? 2014:$50 million

FCF in? 2015: $57 million

Future FCF growth rate beyond? 2015: 5%

?Weighted-average cost of? capital: 9.4 %

The terminal enterprise value in 2014 is $_____ million. ?(Round to the nearest? integer.)

The enterprise value in 2013 is $_____million. ? (Round to the nearest? integer.)

The equity value is $_____million. ? (Round to the nearest? integer.)

The value of IDX per share is ______ (Round to the nearest? cent.)

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92671252

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