In: Finance
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 |
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b. 71.4 |
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c. 32.7 |
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d. 39.1 |
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e. 45.0 |