Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.

QUESTION

I have no idea how to answer this problem.

Hi, please help! I have no idea how to answer this problem. 

Year                          1                  2              3               4                 5

Free Cash Flow $21 million $26 million $30 million $31 million $33 million

XYZ Industries is expected to generate the above free cash flows over the next five years, after which free cash flows are expected to grow at a rate of 4% per year. If the weighted average cost of capital is 7% and XYZ has cash of $15 million, debt of $48 million, and 71 million shares outstanding, what is General Industries' expected current share price?

Answer in millions and round to the nearest cent.

Show more
LEARN MORE EFFECTIVELY AND GET BETTER GRADES!
Ask a Question