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Year 1 2 3 4 5 Free Cash Flow 20 28 27 29 33 American Industries is expected to generate the above free cash flows
Year | 1 | 2 | 3 | 4 | 5 |
Free Cash Flow | 20 | 28 | 27 | 29 | 33 |
American Industries is expected to generate the above free cash flows over the next five years, after which free cash flows are expected to grow at a rate of 4% per year. If the weighted average cost of capital is 12% and American Industries has cash of $41 million, debt of $36 million, and 82 million shares outstanding, what is American Industries' expected current share price?
Round your answer to two decimal places, and omit dollar signs and commas (i.e., enter $2,001.2001 as 2001.20).
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