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A firm s stock is currently trading at $ 4 0 per share. Assume that the firm is in a stable growth phase with an
A firms stock is currently trading at $ per share. Assume that the firm is in a stable growth phase with an expected longterm cashflow growth of Effective tax rate is The firms debt carries a BBB credit rating. Most recent data available for the firm is as follows
All in $ millions except per share amounts and percentages
EBIT $
Capex $
Depreciation expense $
Change in Accounts Payable $
Change in Inventories $
Change in Accounts Receivable $
Total debt $
Cash and cash equivalents $
Shares outstanding
Beta
Default spread on BBB rated firms
Market risk premium
Yield to maturity on year Treasury
a What is the firms free cash flow?
b What is the firms enterprise value and price per share?
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