Firm C's free cash flows are expected to be $120 million in one year, $140 million in two years, and $150 million in three years. Afterwards, they are expected to grow at 2% per year forever. Firm C has 350 million in debt and $27 million excess cash. It has 100 million shares outstanding. Firm C's weighted average cost of capital is 11%. 

What is Firm C's fair price per share?

 

Answer rating: 100% (QA)

To calculate Firm Cs fair price per share we can use the discounted cash flow DCF method The fair pr... View the full answer