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Suppose you've estimated FCFE to be $50 million next year, $65 million in year 2, and $80 million in year 3. After year 3, you
Suppose you've estimated FCFE to be $50 million next year, $65 million in year 2, and $80 million in year 3. After year 3, you have assumed that cash flows will grow at a constant rate of 6% per year, indefinitely. If the required return is 14.2%, what is the price of the stock? (Assume that there are 28 million shares outstanding) O $30.06 O $41.22 O $56.30 O $25.81 O $22.33 O $37.85 O $50.93
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