Question
Portage Bay Enterprises has $2 million in excess cash, no debt, and is expected to have free cash flow of $10 million next year. Its
Portage Bay Enterprises has $2 million in excess cash, no debt, and is expected to have free cash flow of $10 million next year. Its FCF is then expected to grow at a rate of 3% per year forever. If Portage Bay's equity cost of capital is 9% and it has 4 million shares outstanding, what should be the price of Portage Bay stock?
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Fundamentals Of Healthcare Finance
Authors: Louis C. Gapenski
2nd Edition
1567934757, 978-1567934755
