A firm will have free cash flows (FCFs) of $875,000 next year. The FCFs are expected to grow at a constant rate of 5% per year. The firm has a WACC of 15% per year. If the firm has $3,000,000 in debt, $1,400,000 in preferred stock, $500,000 in cash and 27,500 shares, what is the price of one share of common stock? Round to the nearest penny.

Answer rating: 100% (QA)

To determine the price of one share of common stock we need to calculate the total equity value o... View the full answer