Answered step by step
Verified Expert Solution
Question
1 Approved Answer
CORPORATE VALUATION Smith Technologies is expected to generate $120 million in free cash flow next year, and FCF is expected to grow at a constant
CORPORATE VALUATION Smith Technologies is expected to generate $120 million in free cash flow next year, and FCF is expected to grow at a constant rate of 7% per year indefinitely. Smith has no debt or preferred stock, and its WACC is 13%. If Smith has 60 million shares of stock outstanding, what is the stocks value per share? Round to TWO decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started