Orange Co.s free cash flows for the next 4 years as follows: $3 million, $6 million, $8
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Question:
$16 million. After the fourth year, free cash flow is projected to grow at a constant 3%. Orange Co.’s
WACC is 9%, the market value of its debt and preferred stock totals $75 million; and it has 7.5 million
shares of common stock outstanding.
• What is the company’s estimated price per share?
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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