Question
You have gathered the following information for a company: Cost of equity 10% WACC 5% Market value of debt 200 Number of shares outstanding 10
You have gathered the following information for a company:
| Cost of equity | 10% |
| WACC | 5% |
| Market value of debt | 200 |
| Number of shares outstanding | 10 |
| Year | 1 |
| Free cash flow (in one year) | 231 |
|
|
|
| Continuing value (in one year) | 462 |
Based on the free cash flow valuation model, what is this companys share price today?
| 43 | ||
| 44 | ||
| 45 | ||
| 46 | ||
| None of the other answers are correct |
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
Finance At Work
Authors: Valérie Boussard
1st Edition
113820403X, 978-1138204034
