Question
Phoenix Corp. faltered in the recent recession but is recovering. Free cash flow has grown rapidly. Forecasts made in 2019 are as follows: ($ millions)
Phoenix Corp. faltered in the recent recession but is recovering. Free cash flow has grown rapidly. Forecasts made in 2019 are as follows:
| ($ millions) | 2020 | 2021 | 2022 | 2023 | 2024 |
| Net income | 1.0 | 4.0 | 7.2 | 7.70 | 8.0 |
| Investment | 1.0 | 3.0 | 3.2 | 3.4 | 3.4 |
| Free cash flow | 0 | 1.0 | 4.0 | 4.3 | 4.6 |
Phoenixs recovery will be complete by 2024, and there will be no further growth in net income or free cash flow. a. Calculate the PV of free cash flow, assuming a cost of equity of 10%. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
b. Assume that Phoenix has 14 million shares outstanding. What is the price per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
c. If the net income for 2019 is $1 million, what is Phoenixs P/E ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Which Crypto Currency Should I Buy Make Finding And Investing In New Crypto Currencies Fun Easy And Profitable
Authors: Lisa Phillips
1st Edition
1732644586, 978-1732644588
