A company is projected to generate free cash flows of $60 million per year for the next two years, after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is 8.0%. It has $30 million worth of debt and $3 million of cash. There are 20 million shares outstanding. If the exit multiple for this company's free cash flows (EV/FCFF) is 12, what's your estimate of the company's stock price? Round to one decimal place. 

Answer rating: 100% (QA)

To calculate the stock price we need to find the present value of the companys future free cash flow... View the full answer