Common shares of Yostmeister, Inc are currently selling for $30. The firms had free cash flow for the first fiscal year that just ended of $100 million and has a weighted average cost of capital of 12 percent. The firm also has $2.5 billion in debt and 75 millions shares outstanding. You expect the growth rate for free cash flows increase by 8% per year. Based on this information, how will you recommend this stock?

Common shares of Yostmeister, Inc are currently selling for $30. The firms had free cash flow for the first fiscal year that just ended of $100 million and has a weighted average cost of capital of 12 percent. The firm also has $2.5 billion in debt and 75 millions shares outstanding. You expect the growth rate for free cash flows increase by 8% per year. Based on this information, how will you recommend this stock? A. Hold B. Sell C. Not sure OD. Buy