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You are given the information below about a company. What is the current stock price (P 0 )? Note: The FCF are expressed on a

You are given the information below about a company. What is the current stock price (P0)?
Note: The FCF are expressed on a per share basis.
FCF next year (FCF1) = $2.00 per share
FCF in year 2 (FCF2) = $2.50 per share
FCF in year 3 (FCF3) = $4.00 per share
FCF Growth Rate (g) = 3.0% after year 3
WACC = 8.0% Discount rate

Answers:

A) $33.76

B) $58.67

C) $72.58

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