Suppose the free cash flow to the firm is expected to be $1 mil for year...
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Suppose the free cash flow to the firm is expected to be $1 mil for year 1 and $2 mil for year 2. Then it is expected to grow at a rate of 5% per year. Assume WACC = 11%. If 500,000 shares of stock are outstanding, what is the predicted price of this stock if the firm has $5 mil of debt? Round your answer to two decimal places and enter it without the dollar sign. Suppose the free cash flow to the firm is expected to be $1 mil for year 1 and $2 mil for year 2. Then it is expected to grow at a rate of 5% per year. Assume WACC = 11%. If 500,000 shares of stock are outstanding, what is the predicted price of this stock if the firm has $5 mil of debt? Round your answer to two decimal places and enter it without the dollar sign.
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Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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