Question
Gallovit's free cash flow is growing at a constant rate of 8.5 percent with FCF1 expected to be $25 million. The company's WACC is 11
Gallovit's free cash flow is growing at a constant rate of 8.5 percent with FCF1 expected to be $25 million. The company's WACC is 11 percent. The firm has a total of $200 million of long-term debt and preferred stock, and there are 30 million shares outstanding. What is the estimated intrinsic value per share of the common stock?
- A. $25.33
- B. $22.67
- C. $26.67
- D. $29.50
- E. $24.00
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Finance Introduction To Institutions Investments And Management
Authors: Ronald W. Melicher, Edgar A. Norton
12th Edition
0471675792, 9780471675792
