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TGN Corporation generated FCF of $1,200,000 in the most recently completed year. FCF is expected to grow a 7% this year, 6% in year 2
TGN Corporation generated FCF of $1,200,000 in the most recently completed year. FCF is expected to grow a 7% this year, 6% in year 2 and 5% in year 3. Beginning in year 4, FCF will become constant at 4%. The company has $2,500,000 of debt, $900,000 of preferred stock, and 500,000 common shares outstanding. With a required return of 15%, what is a share of TGN's common stock worth today?
Group of answer choices
$29.71
$24.23
$17.13
$37.15
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