Question
Birch Corporation is expected to generate $10M FCF next year. The company's FCF is expected to growth at a steady rate of 5%. It has
Birch Corporation is expected to generate $10M FCF next year. The company's FCF is expected to growth at a steady rate of 5%. It has $15M of cash and $40M debt on the balance sheet. Its cost of capital is 10%. If the company has 20M shares outstanding, what should be the price per share?
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
