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Use the information to answer the following questions. Analysts project the following free cash flows (FCFS) for Ezzell Corporation during the next 3 years, after
Use the information to answer the following questions. Analysts project the following free cash flows (FCFS) for Ezzell Corporation during the next 3 years, after which FCF is expected to grow at a constant 9% rate. Ezzell's WACC is 12%. Ezzell has $200 in debt and 50 shares of stock. Time Year o Year 1 Year 2 Year 3 Year 4 ? FCF -$50 $60 s35 What is Ezzell's value today? Select one: a $561 b. $729 c. $933 d. $292 e. $535 Continued from previous question. What should be the current price of Ezzell's stock? Select one: a. $11.22 b. $14.67 c. $12.98 d. $ 9.22 e. $13.22
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