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You are interested in getting into the retail sporting goods business. You know of a store that has Free Cash Flow to the Firm projected

You are interested in getting into the retail sporting goods business. You know of a store that has Free Cash Flow to the Firm projected at $250,000 for next year. This cash flow amount is expected to grow by 2% at the end of year 2 and every year thereafter. The appropriate risk adjusted discount rate is 10% and there are one million shares outstanding. What is the value per share? Select one: a. $5.75 b. $3.13 c. $2.78 O d. $2.09image text in transcribed

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