Question: please show work Ralph, a stock analyst, estimates that Acme Inc.'s free cash flow in one year will be $40 million and future free cash
Ralph, a stock analyst, estimates that Acme Inc.'s free cash flow in one year will be $40 million and future free cash flow will grow by 5%. Another analyst, Jennifer estimates that free cash flow will grow by 6%. Both estimate Acme's WACC is 9%. Acme Inc. has $130 million in debt, $70 million in cash, and 12 million shares. What is the percent difference in Jennifer's estimate Acme's stock price versus Ralph's? +35.46% +33.67% -23.87% +30.00% 0 -33.33%
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