Question: 14. Chapter MC, Section .07, Problem 027 Decker Tires' free cash flow was just FCF = $1.32. Analysts expect the company's free cash flow to
14. Chapter MC, Section .07, Problem 027 Decker Tires' free cash flow was just FCF = $1.32. Analysts expect the company's free cash flow to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The WACC for this company 9.00%. Decker has $4 million in short-term Investments and $14 million in debt and 1 million shares outstanding. What is the best estimate of the stock's current intrinsic price? Oa. $34.87 Ob. $32.65 Oc. $35.99 Od. $31.59 Oe. $33.75
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