Lockeran Co. has the following projected sales, costs, net investment, and free cash flows in millions. The anticipated growth rate in free cash flows after year 6 is 3% per year forever. There are 3 million shares outstanding, and investors demand an 8% return on the company's shares. Using the constant growth model to find the terminal value, calculate the price of the company's stock. (Round to 2 decimal places)

	1	2	3	4	5	6
Sales	176.00	200.64	224.72	247.19	266.97	282.99
costs	82.5	94.05	105.34	115.87	125.15	132.66
Taxes	17.33	19.75	22.12	24.33	26.28	27.85
Net Income (OCF)	76.17	86.84	97.26	106.99	115.54	122.48
net investment	45	51.3	57.46	63.21	68.27	72.37
FCF	31.17	35.54	39.80	43.78	47.27	50.11

Answer rating: 100% (QA)

Sales Costs Tames Net income OCF Net investment FCF PV PU pv Pu PU Pu g Total 3117 of formulo 311... View the full answer