Use the following information for problems 10 Our WACC is 10 and the table below shows the forecasted free cash flows Year 1 2 3 Free cash flows $2,000,000 $4,000,000 Constant growth rate of free cash flows starts at 4 Part 10 The company has $6,500,000 in debt What will the price of the stock be if the company is planning an IPO by issuing 5,000,000 shares

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Use the following information for problems 10 Our WACC is 10% and the table below shows the forecasted free cash flows. Year 1 2 3

Use the following information for problems 10

Our WACC is 10% and the table below shows the forecasted free cash flows.

Year	1	2	3
Free cash flows	$2,000,000	$4,000,000	Constant growth rate of free cash flows starts at 4%

Part 10

The company has $6,500,000 in debt. What will the price of the stock be if the company is planning an IPO by issuing 5,000,000 shares?

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