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Answer: $16.58
**Calculation:** - Free cash flow: $32,340 - Diluted shares outstanding: 1,951 - Free cash flow per share = $32,340 ÷ 1,951 = $16.58 **Explanation:** For discounted cash flow (DCF) valuation models, diluted shares outstanding should be used rather than basic shares outstanding because DCF models aim to value the entire company, including all potential dilutive securities. The diluted share count (1,951) reflects the maximum potential dilution from all convertible securities, options, and warrants, providing a more conservative and comprehensive basis for per-share valuation.
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$1,147$32,340For use in a discounted cash flow model, the most appropriate estimate of free cash flow per share is closest to:
A
$15.99
B
$16.58
C
$17.30
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