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 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? 3 Year FCFS $20.00 $48.00 $54.00 4 $59.40
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
