Question
Company has the following cash flow stream. CF1 = 307 CF2 = 634 CF3 = 880 CF4 = 950 Cash flow is expected to be
Company has the following cash flow stream.
CF1 = 307
CF2 = 634
CF3 = 880
CF4 = 950
Cash flow is expected to be constant after year 4, with a growth rate of 4%. The WACC is 10%. In addition, company has 30 millions debt, with 58 millions shares outstanding. What is the stock price, P0 , today?
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Finance And Economics Discussion Series Measurement Error And Time Aggregation A Closer Look At Estimates Of Output Labor Elasticities
Authors: United States Federal Reserve Board, Marcello Estevao
1st Edition
1288722990, 9781288722990
