Portage Bay Enterprises has $3 million in excess cash, no debt, and is expected to have...
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Portage Bay Enterprises has $3 million in excess cash, no debt, and is expected to have free cash flow of $14 million next year. Its FCF is then expected to grow at a rate of 3% per year forever. If Portage Bay's equity cost of capital is 12% and it has 5 million shares outstanding, what should be the price of Portage Bay stock? The price of Portage Bay's stock is $ 32.04 per share. (Round to the nearest cent.) Portage Bay Enterprises has $3 million in excess cash, no debt, and is expected to have free cash flow of $14 million next year. Its FCF is then expected to grow at a rate of 3% per year forever. If Portage Bay's equity cost of capital is 12% and it has 5 million shares outstanding, what should be the price of Portage Bay stock? The price of Portage Bay's stock is $ 32.04 per share. (Round to the nearest cent.)
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