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Estimate the current stock price (P 0 ) using the Free Cash Flow method with the following data: Bonds Yield to Maturity: 6% Tax Rate:
Estimate the current stock price (P0) using the Free Cash Flow method with the following data: Bonds Yield to Maturity: 6% Tax Rate: 30% WACC: 5.576% beta: 0.75 T-Bill Rate: 4% S&P 500 Returns: 10% Total Capital: $1,000,000 Equity: $320,000 FCF1: $250,000 FCF2: $500,000 FCF3: $750,000 Constant Growth After Year-3: 2.5% Shares Outstanding: 1,500,000
Question 1 options:
| $9.42 |
| $10.91 |
| $14.59 |
| $8.17 |
| $10.19 |
| $19.42 |
| $18.17 |
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