Question
You are covering one particular energy sector stock: Peruna Corp. Based on your analysis, you think Peruna Corp. will have FCF as shown in the
You are covering one particular energy sector stock: Peruna Corp. Based on your analysis, you think Peruna Corp. will have FCF as shown in the table below for the next five years. Thereafter, Peruna's FCF will increase at a stable 6% per year in perpetuity. Assume Peruna's debt is valued at $500 million with 14 million shares outstanding. Peruna's WACC is 15%, what is the price of a share of Peruna's stock today? Do NOT round to less than three decimal places in the intermediate steps. Round your final answer to two decimal places. Year 1 2 3 4 5 FCF ($ millions) 75 84 96 111 120
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