Pottery Bain Enterprises has $1 million in debt, no cash and is expected to have free cash flow of $10 million next year. Its FCF is then expected to grow at a rate of 3% per year forever. If Pottery Bain's weighted average cost of capital is 11% and it has 4 million shares outstanding.

What is its share price?

Answer rating: 100% (QA)

To calculate the share price of Pottery Bain Enterprises we can use the discounted cash flow ... View the full answer