Question: FCF estimates: 1 2 3 Year: 41 18 12 22 Free Cash Flow, $ millions 26 Colonial Inc. is expected to generate the above free

 FCF estimates: 1 2 3 Year: 41 18 12 22 Free

FCF estimates: 1 2 3 Year: 41 18 12 22 Free Cash Flow, $ millions 26 Colonial Inc. is expected to generate the above free cash flows over the next four years, after which FCFs are expected to grow at a rate of 5% per year. If the weighted average cost of capital is 11% and Colonial has cash of $50 million, debt of $70 million, and 26 million shares outstanding, what is Colonial's expected current share price? Answer in dollars and cents. Do not include a $ sign

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!