In the free cash flow model, how do you calculate the value of share price? Disc

Question

In the free cash flow model, how do you calculate the value of share price? Discount all future FCFFs at WACC, then subtract equity from it, then divide it by number of shares outstanding Discount all future FCFEs at cost of equity, then subtract equity from it, then divide it by number of shares outstanding Discount all future FCFFs at WACC, then subtract debt from it, then divide it by number of shares outstanding Discount all future FCFEs at cost of equity, then subtract debt from it, then divide it by number of shares outstanding

Explanation / Answer

Option C is the correct answer.

first we will discount future cash flows at WACC of the firm and we will market value of debt and we will divide the remaining value with number of shares outstanding

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