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Year 1 2 3 4 5 Free Cash Flow $22 million $26 million $29 million $30 million $32 million General Industries is expected to generate
Year | 1 | 2 | 3 | 4 | 5 |
Free Cash Flow | $22 million | $26 million | $29 million | $30 million | $32 million |
General 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 9% and General Industries has cash of $15 million, debt of $45 million, and 80 million shares outstanding, what is General Industries' current Enterprise Value?
a. | $622.45 million | |
b. | $545.94 million | |
c. | $539.11 million | |
d. | $607.37 million | |
e. | $652.45 million |
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