Question
Hodge Technologies is expected to generate $120 million in free cash flow next year, and FCF is expected to grow at a constant rate of
Hodge Technologies is expected to generate $120 million in free cash flow next year, and FCF is expected to grow at a constant rate of 6 percent per year indefinitely. Hodge has no debt or preferred stock, and its weighted-average cost of capital is 9.5 percent. If Hodge has 60 million shares of stock outstanding, what is the stocks value per share?
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
6th Edition
1260226786, 9781260226782
