Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sims Manufacturing is expected to generate $160 million in free cash flow next year, and FCF is expected to grow at a constant rate of
Sims Manufacturing is expected to generate $160 million in free cash flow next year, and FCF is expected to grow at a constant rate of 5% per year indefinitely. Sims has no debt or preferred stock, and its required rate of return is 8%.
If Sims has 75 million shares of common stock outstanding, what is the stock's value per share?
(Answer to the nearest cent. i.e. one thousand dollars would be entered 1000.00).
Your Answer:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started