Question
Portage Bay Enterprises has $1 million in excess cash, no debt, and is expected to have free cash flow of $14 million next year. Its
Portage Bay Enterprises has $1 million in excess cash, no debt, and is expected to have free cash flow of $14 million next year. Its FCF is then expected to grow at a rate of 5 % per year forever. If Portage Bay's Weighted Average Cost of Capital (WACC) is 11% and it has 7 million shares outstanding, what should be the price of Portage Bay stock?
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Build An Online Retail System For Under $150
Authors: Roger Butterworth
1st Edition
1530170044, 978-1530170043
