Question 26

Decker Tires free cash flow was just FCF₀ = $1,32 million. Analysts expect the company's free cash flow to grow by 20% this year, by 15% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The WACC for this company 8.00%. Decker has $4 million in short-term investments and $14 million in debt and 1 million shares outstanding. What is the best estimate of the stock's current intrinsic price?

Group of answer choices

$35.99

$45.09

$47.69

$55.09