Your company is forecasting cash flows of $20 million next year, $40 million in year 2 and $60 million in year 3. After that  growth in cash flows is expected to level out at 7% per year. Your company has $150 million in marketable securities and $400 million in interest bearing debt. If the cost of capital is 10% and there are 10 million shares outstanding what is the  price per share of stock?

Answer rating: 100% (QA)

The value of a firm is the sum of present value of freecash flows discounted at ... View the full answer