You want to value a company using the free cash flow to equity (FCFE) method. You determined that the current FCFE in year 0 is A$1946089 after analysing the financial statements. You expect free cash flow to grow at a substantially faster pace of 10.12 percent over the next two years, then at a constant rate of 4.87 percent after that.

You also calculated that the firm's cost of equity is 14.56 percent and its weighted average cost of capital (WACC) is 8 percent.

If there are 1,000,000 shares outstanding, what is the predicted share price of this company in two decimal places? 

Answer rating: 100% (QA)

If there are 1000000 shares outstanding what is the predicted share price of this company in two decimal places To value the company using the FCFE me... View the full answer