A company is projected to generate free cash flows of $60 million per year for the next
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A company is projected to generate free cash flows of $60 million per year for the next two years, after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is 8.0%. It has $30 million worth of debt and $3 million of cash. There are 20 million shares outstanding. If the exit multiple for this company's free cash flows (EV/FCFF) is 12, what's your estimate of the company's stock price? Round to one decimal place.
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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