Question
Stephens Stock Company (SSC) expects to generate free cash flows of $50 million, 60 million and 65 million over the next three years after which
Stephens Stock Company (SSC) expects to generate free cash flows of $50 million, 60 million and 65 million over the next three years after which SSC expects free cash flows to grow at 3% per year. SSC has a cost of capital of 15%, excess cash of $20 million and debt of $100 million. What is SSC's enterprise value? If SSC has 20 million shares of stock outstanding, then what is the value of a share of SSC stock?
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds
11th Edition
1305262999, 1305262997, 035726164X, 978-1305262997
