Question
Smith Technologies is expected to generate $112 million in free cash flow next year, and FCF is expected to grow at a constant rate of
Smith Technologies is expected to generate $112 million in free cash flow next year, and FCF is expected to grow at a constant rate of 4.8% per year indefinitely. Smith has no debt or preferred stock, and its WACC is 5.8%. If Smith has 74 million shares of stock outstanding, what is the stocks value per share? Please extend answer to 4 decimal places.
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
