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Problem 2 (15 points). Malt Beer Water Co just recorded Free Cash Flows in the most recently reported year of $40 million. Analysts expect the
Problem 2 (15 points). Malt Beer Water Co just recorded Free Cash Flows in the most recently reported year of $40 million. Analysts expect the company's NOPAT to be $66 million this upcoming year, while in the second year, NOPAT is projected to be $75 million. The net capital spending for the same two periods are $6 million and $10 million accordingly. In the third year, FCF's are expected settle to a constant growth of 6%. The required rate of return on the company's stock is 12 percent. The Company has $120 million of debt, and 100 million shares of stock outstanding. What is the value of the firm? What should be the current price of the company's stock
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