Question
Year 0 1 2 3 4 FCF ($ million) 25 30 35 40 FCF for firm Amarillo Shopping Center (ASC) is listed in the table
| Year | 0 | 1 | 2 | 3 | 4 |
| FCF ($ million) | 25 | 30 | 35 | 40 |
FCF for firm Amarillo Shopping Center (ASC) is listed in the table above. After year 4 FCF is expected to be $0. The weighted average cost of capital for ASC is 7%. If cash = $5 million, the market value of ASCs debt = $45 million, and the number of shares outstanding is 20 million, estimate the share price.
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
