Question
Portage Bay Enterprises has $2 million in excess cash, no debt, and is expected to have free cash flow of $14 million next year. Its
Portage Bay Enterprises has $2 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 per year forever. If Portage Bay's equity cost of capital is%11 and it has 7 million shares outstanding, what should be the price of Portage Bay stock?
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett
6th Edition
0077211332, 9780077211332
