Question
Company X is expected to generate Free Cash Flows of $77 million next year. Free Cash Flow is expected to grow at 12% for the
Company X is expected to generate Free Cash Flows of $77 million next year. Free Cash Flow is expected to grow at 12% for the following two years before slowing down to a long term growth of 2%. The company's WACC is 13%. Total shares outstanding are 88 million and the net debt is $2 per share.
What is the the company's expected share price based on this information?
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Derivatives Markets
Authors: Robert McDonald
3rd Edition
978-9332536746, 9789332536746
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