A company is projected to generate free cash flows of $600 million per year for the next
Fantastic news! We've Found the answer you've been seeking!
Question:
A company is projected to generate free cash flows of $600 million per year for the next 3 years (FCFF1, FCFF2 and FCFF3). Thereafter, the cash flows are expected to grow at a 3.0% rate in perpetuity. The company's cost of capital is 7.0%. The company owes $200 million to lenders and has $50 million in cash. If it has 200 million shares outstanding, what is your estimate for its stock price? Round to one decimal place.
Related Book For
Posted Date: