Question
A company is expected to have free cash flows of $4 million next year. The weighted average cost of capital is WACC = 11.2%, and
A company is expected to have free cash flows of $4 million next year. The weighted average cost of capital is WACC = 11.2%, and the expected constant growth rate is g = 3.3%. The company has $2 million in short-term investments, $2 million in debt, and 1 million shares. What is the stock's current intrinsic stock price?
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker
3rd Edition
076377894X, 978-0763778941
