Question
A firm is expected to have free cash flow of $966 million next year. The firm has $1 billion of outstanding debt and no preferred
A firm is expected to have free cash flow of $966 million next year. The firm has $1 billion of outstanding debt and no preferred stock. The WACC is 10% and FCF is expected to grow at 1% indefinitely. If the firm has 99 million shares outstanding, what is the expected value of the firm's stock price?
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Cost Of Capital Applications And Examples
Authors: Shannon P. Pratt, Roger J. Grabowski, Richard A. Brealey
5th Edition
1118555805, 9781118555804
