FCF for firm Canyon Shopping Center (CSC) is listed in the table . After year 4...

   

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FCF for firm Canyon Shopping Center (CSC) is listed in the table . After year 4 FCF is expected to grow at a constant rate of 2%. The weighted average cost of capital for CSC is 7%. If cash = $10 million, the market value of ASC's debt = $35 million, and the number of shares outstanding is 5 million, estimate the share price. Year 0 1 FCF ($ million) -30 25 22 25 3 25 25 4 25 FCF for firm Canyon Shopping Center (CSC) is listed in the table . After year 4 FCF is expected to grow at a constant rate of 2%. The weighted average cost of capital for CSC is 7%. If cash = $10 million, the market value of ASC's debt = $35 million, and the number of shares outstanding is 5 million, estimate the share price. Year 0 1 FCF ($ million) -30 25 22 25 3 25 25 4 25

Answer rating: 100% (QA)

To estimate the share price of Canyon Shopping Center CSC we can use the dividend discount model DDM ... View the full answer