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Year Free Cash Flow 1 $10 million 2 3 $16 million 4 $20 million $24 million AAA is expected to generate the above free cash
Year Free Cash Flow 1 $10 million 2 3 $16 million 4 $20 million $24 million AAA is expected to generate the above free cash flows over the next four years, after which they are expected to grow at a rate of 5% per year. If the weighted average cost of capital is 10%, and AAA has cash of $20 million, debt of $50 million, and 30 million shares outstanding, what is AAA expected current share price? (Hints: you'll need the current enterprise value you computed in the previous question.) $6.15 OA. $12.27 OB. $12.89 $19.94 D
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