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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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