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Question 10 2.5 pts ABC Inc.'s last year's free cash flows (FCF) was $66 million. The free cash flows is expected to grow indefinitely at
Question 10 2.5 pts ABC Inc.'s last year's free cash flows (FCF) was $66 million. The free cash flows is expected to grow indefinitely at an annual 3.22 percent rate. The firm has 14 million shares outstanding, $8 million in cash and short-term investments, $17 million in its debt and its cost of capital is 10.11%. If ABC Inc. can reduce its weighted average cost of capital to 7.58%, by how much will its stock price increase? $18.43 O $45.06 0 $40.97 O $57.35 $38.92
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