Over the past year, a company generated free cash flows of $6M. You expect them to grow
Fantastic news! We've Found the answer you've been seeking!
Question:
Over the past year, a company generated free cash flows of $6M. You expect them to grow at a constant rate of 3.5% forever.
Here is some other information on the company's capitalization:
Market Value Book Value
Number of shares Debt $1.4M $1.9M n/a
Preferred Stock $7/share $8/share 500,000
The company's shareholders expect a 10.5% return on investments of this risk. The company's WACC is 8%. If the company has 2.5 million common shares, how much is each share worth?
Related Book For
Posted Date: