At the end of 2016, Newerks Inc. forecasts that its free cash flow will be $50 million
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At the end of 2016, Newerks Inc. forecasts that its free cash flow will be $50 million in 2017, $60 million in 2018, and $72 million in 2019. After 2019, Newerks expects its free cash flow earnings to grow at an annual rate of 6%. Newerks has $75 million in debt and $25 million in cash. If Newerks has 5 million shares outstanding and a cost of capital of 14%, what is Newerks stock price at the end of 2016?
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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