STU Company expects $2,000,000 of FCF next year. Growth is expected to be 3% per year,...

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STU Company expects $2,000,000 of FCF next year. Growth is expected to be 3% per year, and the WACC is 7%. If the company has no debt or preferred stock and 2 million shares of common stock outstanding, what should be its stock price? (Round to the nearest cent and do not enter a dollar sign) STU Company expects $2,000,000 of FCF next year. Growth is expected to be 3% per year, and the WACC is 7%. If the company has no debt or preferred stock and 2 million shares of common stock outstanding, what should be its stock price? (Round to the nearest cent and do not enter a dollar sign)

Answer rating: 100% (QA)

To calculate the stock price of STU Company we can use the Free Cash Flow to Equity FCFE ... View the full answer