Question
Portage Bay Enterprises has $4 million in excess cash, no debt, and is expected to have free cash flow of $15 million next year. Its
Portage Bay Enterprises has $4 million in excess cash, no debt, and is expected to have free cash flow of $15 million next year. Its FCF is then expected to grow at a rate of 6% per year forever. If Portage Bay's equity cost of capital is 9% and it has 44 million shares outstanding, what should be the price of Portage Bay stock?
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Foundations In Personal Finance
Authors: Dave Ramsey
1st Edition
0981683967, 978-0981683966
