KJ wants to forecast a 12-month price target for Cain and Associates.He estimates the FCFs and terminal value shown in the table below.C&A's equity to total capitalization ratio is expected to hold steady at 70%.C&A has 20 million shares outstanding.Using this information and a WACC of 12.5%, what is C&A's price per share?(in $millions)Year 1Year 2Year 3

FCFs$23$25.8$34Terminal Value$567

Answer rating: 100% (QA)

To calculate Cain and Associates price per share we need to find the present value of its future cas... View the full answer