Question: Example 4: Free Cash Flow to Equity - Suppose Los Pollos Hermanos Resturant has free cash flow to equity of $900,000 for years 14. After

Example 4: Free Cash Flow to Equity - Suppose Los Pollos Hermanos Resturant has free cash flow to equity of $900,000 for years 14. After that, the free cash flow to equity is expected to grow at a rate of 3%. The cost of equity capital is 18% and there are 500,000 shares outstanding. Estimate the stock price of Los Pollos Hermanos

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