Question
Portage Bay Enterprises has $ 4 million in excesscash, nodebt, and is expected to have free cash flow of $ 13 million next year. Its
Portage Bay Enterprises has $ 4 million in excesscash, nodebt, and is expected to have free cash flow of $ 13 million next year. Its FCF is then expected to grow at a rate of 6 %
Per year forever. If PortageBay's equity cost of capital is 9 % and it has 4 million sharesoutstanding, what should be the price of Portage Bay stock
The price of PortageBay's stock is $ per share. (Round to the nearest cent
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Essentials of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
14th edition
324422709, 324422702, 978-0324422702
