A company is forecasted to generate free cash flows of $53 million for the next three...

A company is forecasted to generate free cash flows of $53 million for the next three years. After that, cash flows are projected to grow at a 2.2% annual rate in perpetuity. The company's cost of capital is 12.8%. The company has $54 million in debt, $6 million of cash, and 13 million shares outstanding. What's the value of each share?

		a. 33.4
		b. 71.4
		c. 32.7
		d. 39.1
		e. 45.0

Expert Solution

Correct option is (a)

jeff jeffy answered 3 years ago

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