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

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Expert Solution

Correct option is (a)

jeff jeffy answered 2 years ago

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