Company has the following cash flow stream. CF1 = 407 CF2 = 680 CF3 = 920...

Company has the following cash flow stream.

CF1 = 407

CF2 = 680

CF3 = 920

CF4 = 939

Cash flow is expected to be constant after year 4, with a growth rate of 4%. The WACC is 10%. In addition, the company has 12 millions in cash, and 34 millions debt, with 50 millions shares outstanding. What is the stock price, P0 , today?

Expert Solution

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jeff jeffy answered 1 year ago

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