Question: QUESTION 10 Wall Inc. forecasts that it will have the free cash flows (in millions) shown below. Its weighted average cost of capital is 14%.

QUESTION 10 Wall Inc. forecasts that it will have the free

QUESTION 10 Wall Inc. forecasts that it will have the free cash flows (in millions) shown below. Its weighted average cost of capital is 14%. The free cash flows are expected to continue growing at the same rate after Year 4 as from Year 3 to Year 4. It currently has 30% debt and 70% equity and 1.5 million shares outstanding. What is your estimate of the stock's current value? Year FCFS 1 - $20.00 2 $48.00 3 $54.00 $59.40

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