Question: Can you please help me answer this question? Thank you Huxley Building Supplies' last free cash flow was $1.75 million. Its free cash flow growth

 Can you please help me answer this question? Thank you Huxley

Can you please help me answer this question?

Thank you

Building Supplies' last free cash flow was $1.75 million. Its free cash

Huxley Building Supplies' last free cash flow was $1.75 million. Its free cash flow growth rate is expected to be constant at 25% for 2 years, after which free cash flows are expected to grow at a rate of 6% forever. Its weighted average cost of capital WACC is 12%. Huxley has $5.5 million in short-term investments and $9 million in debt and has 1 million shares outstanding. What is the best estimate of the current intrinsic stock price? a. $41.71 b. $39.14 c. $40.64 d. $42.80 e. $44.92

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!