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An analyst's forecast for SouthEast Air's free cash flows for next year is provided in the table. Assume that free cash flow is paid at
An analyst's forecast for SouthEast Air's free cash flows for next year is provided in the table. Assume that free cash flow is paid at the end of each year and we are at the beginning of a year. Last year's values are for the year-end yesterday. The analyst expects SouthEast's cash flow to remain constant at next year's level in perpetuity. The WACC for SouthEast is 8%. Calculate the fair price for SouthEast's shares today. $57.48 $64.95 $50.73 $51.36 $48.98
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