Question
Company X is expected to generate Free Cash Flows of $77 million next year. Free Cash Flow is expected to grow at 12% for the
Company X is expected to generate Free Cash Flows of $77 million next year. Free Cash Flow is expected to grow at 12% for the following two years before slowing down to long-term growth of 2%. The company's WACC is 13%. Total shares outstanding are 88 million and the net debt is $2 per share.
What is the company's expected share price based on this information?
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Year PVF 13 Cashflow PV 1 08850 77 68142 2 07831 8624 67539 3 06931 96589 66941 4 O...Get Instant Access to Expert-Tailored Solutions
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Fundamental Financial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds
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9781259296802, 9781259296758, 78025907, 1259296806, 9781259296765, 978-0078025907
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