Covan, Inc is expected to have the following free cash flow Year 1 2 3 4 FCF 11 13 14 15 Grow by 3 per year a Covan has 6 million shares outstanding, $4 million in excess cash, and it has no debt If its cost of capital is 12 , what should be its stock price b Covan adds its FCF to cash, and has no plans to add debt If you plan to sell Covan at the beginning of year 2, what is its expected price c Assume you bought Covan stock at the beginning of year 1 What is your expected return from holding Covan stock until year 2 a Covan has 6 million shares outstanding, $4 million in excess cash, and it has no debt If its cost of capital is 12 , what should be its stock price The stock price should be $enter your response here (

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Covan, Inc  is expected to have the following free cash flow  Year 1 2 3 4 FCF 11 13 14 15 Grow by 3  per year a  Covan has 6 million shares outstanding, $4 million in excess cash, and it has no debt  If its cost of capital is 12 , what should be its stock price  b  Covan adds its FCF to cash, and has no plans to add debt  If you plan to sell Covan at the beginning of year 2, what is its expected price  c  Assume you bought Covan stock at the beginning of year 1  What is your expected return from holding Covan stock until year 2  a  Covan has 6 million shares outstanding, $4 million in excess cash, and it has no debt  If its cost of capital is 12 , what should be its stock price The stock price should be $enter your response here  (

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Covan, Inc. is expected to have the following free cash flow: Year 1 2 3 4 FCF 11 13 14 15 Grow by 3% per

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