FG Limited expects to have $65 million in EBIT, $14 million of additional working capital, $32...

Transcribed Image Text:

FG Limited expects to have $65 million in EBIT, $14 million of additional working capital, $32 million in capital expenditures, and $38 million in depreciation this year. The firm has a tax rate of 30% and a WACC of 9%. Its free cash flow is expected to grow by 3% per year. If the firm has $17 million in cash, $120 million in debt, and 8 million shares, what should be the stock price? $40.25 $65.25 $70.25 $80.25 $91.00 FG Limited expects to have $65 million in EBIT, $14 million of additional working capital, $32 million in capital expenditures, and $38 million in depreciation this year. The firm has a tax rate of 30% and a WACC of 9%. Its free cash flow is expected to grow by 3% per year. If the firm has $17 million in cash, $120 million in debt, and 8 million shares, what should be the stock price? $40.25 $65.25 $70.25 $80.25 $91.00