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Zenix is a drone manufacturer. It currently (in 2021) has $52 million of debt and 300 million out-standing shares. It also has $90 million in
Zenix is a drone manufacturer. It currently (in 2021) has $52 million of debt and 300 million out-standing shares. It also has $90 million in cash. Zenix's free cash flows (FCF) for the next 3 years (i.e., for 2022, 2023 and 2024) are expected to be $54 million, $66 million and $72 million respectively. Thereafter, the FCF are expected to grow at the constant rate of 6% per year for the foreseeable future. Zenix has a weighted average cost of capital of 14%. Zenix's current price per share is: a) $5.52 b) $6.64 c) $4.26 d) $4.82 e) $4.68 Zenix is a drone manufacturer. It currently (in 2021) has $52 million of debt and 300 million out-standing shares. It also has $90 million in cash. Zenix's free cash flows (FCF) for the next 3 years (i.e., for 2022, 2023 and 2024) are expected to be $54 million, $66 million and $72 million respectively. Thereafter, the FCF are expected to grow at the constant rate of 6% per year for the foreseeable future. Zenix has a weighted average cost of capital of 14%. Zenix's current price per share is: a) $5.52 b) $6.64 c) $4.26 d) $4.82 e) $4.68
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