Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Year 1 2 3 4 5 Free Cash Flow $23 million $26 million $29 million $31 million $35 million XYZ Industries is expected to generate
Year 1 2 3 4 5 Free Cash Flow $23 million $26 million $29 million $31 million $35 million XYZ 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 1% per year. If the weighted average cost of capital is 8% and XYZ has cash of $17 million, debt of $46 million, and 72 million shares outstanding, what is General Industries' expected current share price? Round your answer to the nearest one-hundredth of a million. Do not include the dollar sign ($)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started