In: Finance
Company has the following cash flow stream.
CF1 = 420
CF2 = 606
CF3 = 953
Cash flow is expected to be constant after year 3, with a growth rate of 4%. The WACC is 10%. In addition, the company has 10 millions in cash, and 64 millions debt, with 17 millions shares outstanding. What is the stock price, P0 , today?