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Pottery Bain Enterprises has $1 million in debt, no cash and is expected to have free cash flow of $10 million next year. Its FCF
Pottery Bain Enterprises has $1 million in debt, no cash 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 Pottery Bain's weighted average cost of capital is 11% and it has 4 million shares outstanding.
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To calculate the share price of Pottery Bain Enterprises we can use the discounted cash flow ...
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
