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River Enterprises has $492 million in debt and 21 million shares of equity outstanding. Its excess cash reserves are $16 million. They are expected to
River Enterprises has $492 million in debt and 21 million shares of equity outstanding. Its excess cash reserves are $16 million. They are expected to generate $196 million in free cash flows next year with a growth rate of 2% per year in perpetuity. River Enterprises' cost of equity capital is 12%. After analyzing the company, you believe that the growth rate should be 3% instead of 2%. How much higher (in dollars) would the price per share be if you are right? If the growth rate is 2%, the price per share is? (Round to the nearest cent.)
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