Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The fiscal year 2 0 2 2 of Consolidated Edison ended recently. During the 2 0 2 2 fiscal year, the firm produced a free

The fiscal year 2022 of Consolidated Edison ended recently. During the 2022 fiscal year, the firm produced a free cash flow of $1.35 billion. Investors are expecting the free cash flow to grow by a constant 3.5% per year in the future. Given the low risk of the firms business, its weighted average cost of capital is only 6%. The firm has 355 million shares outstanding and $24 billion in debt.
With these assumptions, what is the stock price of Consolidated Edison?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Project Finance

Authors: E.R. Yescombe

1st Edition

0127708510, 978-0127708515

More Books

Students also viewed these Finance questions