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Suppose market participants suddenly learn that a company's expected free cash flow will be $139,000 more than originally anticipated in each of the next 9
Suppose market participants suddenly learn that a company's expected free cash flow will be $139,000 more than originally anticipated in each of the next 9 years. For calculation purposes, you may assume the first of these cash flow changes occurs exactly one year from today. If the company's cost of equity capital is 10%, there are 644,000 shares of stock outstanding, and the company has no debt, how much will the share price increase when the new information is recognized? Assume efficient markets. Enter a positive number rounded to the nearest penny. Type your
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