For the next three years a company is expected to have FCFs per share as shown below. Starting from year 4, FCF will steadily grow at 6%. The required rate of return (cost of capital) is 10%

What is the current share price?

Given Steady growth after t=3 6% Required return 10% FCF1 $(5.00) FCF2 $10.00 FCF3 $20.00 find:

FIND FCF4

Find the terminal value of the firm at t=3

Find the present value of the expected cash flows Time Cash Flow PV 1 $(5.00) 2 $10.00 3 Find the price