A company's weighted average cost of capital is 9.6% per year and the market value of...
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A company's weighted average cost of capital is 9.6% per year and the market value of its debt is $43.1 million. The company's free cash flow next year (FCF1) is expected to be $5.1 million and the free cash flow is expected to grow forever at a rate of 4.0% per year. If the company has 3 million shares of common stock outstanding, what is the intrinsic value per share? • A) $16 B) $17 C) $13 D) $15 E) $14 A company's weighted average cost of capital is 9.6% per year and the market value of its debt is $43.1 million. The company's free cash flow next year (FCF1) is expected to be $5.1 million and the free cash flow is expected to grow forever at a rate of 4.0% per year. If the company has 3 million shares of common stock outstanding, what is the intrinsic value per share? • A) $16 B) $17 C) $13 D) $15 E) $14
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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