Question
A company is expected to have free cash flows of $1.75 million next year. The weighted average cost of capital is WACC= 12% and the
A company is expected to have free cash flows of $1.75 million next year. The weighted average
cost of capital is WACC= 12% and the expected constant growth rate is g=6%. The company has
$1.5 million in short-term investments, $2 million in debt, and 1.5 million shares. What is the
stocks current intrinsic stock price?
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Personal Finance An Integrated Planning Approach
Authors: Ralph R Frasca
8th edition
136063039, 978-0136063032
