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A firm will have cash flows of $100 million next year, and cash flows of $112 million, $126 million, $129 million and $140 million in
A firm will have cash flows of $100 million next year, and cash flows of $112 million, $126 million, $129 million and $140 million in years 2-5. Cash flows after that will grow at a constant rate of 4%. The WACC for the firm is 14% and the firm has $275 million in debt and preferred stock along with $70 million in short-term investments. If the firm has 10 million shares of stock, what is the current share price?
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$95.92
$105.12
$99.63
$89.62
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