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Company has the following cash flow stream. CF1 = 386 CF2 = 645 CF3 = 826 CF4 = 980 Cash flow is expected to be
Company has the following cash flow stream.
CF1 = 386
CF2 = 645
CF3 = 826
CF4 = 980
Cash flow is expected to be constant after year 4, with a growth rate of 4%. The WACC is 10%. In addition, the company has 32 millions in cash, and 37 millions debt, with 51 millions shares outstanding. What is the stock price, P0 , today?
(Hint : The answer in my version is 566.44 - This is the format. Do no put $ or % signs, or extra decimals. My answer is 566.44
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