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Given the following data, use the Free Cash Flow to Equity Model to calculate XM's share price. Year 2018 estimated Free Cash Flow to Equity
Given the following data, use the Free Cash Flow to Equity Model to calculate XM's share price.
Year 2018 estimated Free Cash Flow to Equity (FCFE): $200,000,000
Initial growth rate for the next 4 years is 14%, after this period, the growth rate will be constant 6%
(K), the required rate of return on XM's equity is 10%
XM has 1,000 shares of stock outstanding
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