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ackson Tech Inc. last year produced free cash flow of 300 million. You forecast that they can grow that free cash flow at 15% per
ackson Tech Inc. last year produced free cash flow of 300 million. You forecast that they can grow that free cash flow at 15% per year for the next 4 years, then at 3.5% for all periods starting in year 5. The company has cash of $400 million and debt of $0 The Beta of their stock is 1.0, the risk free rate is 3.0% and the market risk premium is 7.0%. using a FCF model, what is the value of the shares today? Their shares outstanding is 100 million
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