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28 Sep 2019
Year 1 2 3 4 5 Free Cash Flow $21 million $25 million $28 million $32 million $32 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 3% per year. If the weighted average cost of capital is 6% and XYZ has cash of $12 million, debt of $48 million, and 72 million shares outstanding, what is General Industries' expected current share price? Answer in millions and round to the nearest cent.
Year 1 2 3 4 5 Free Cash Flow $21 million $25 million $28 million $32 million $32 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 3% per year. If the weighted average cost of capital is 6% and XYZ has cash of $12 million, debt of $48 million, and 72 million shares outstanding, what is General Industries' expected current share price? Answer in millions and round to the nearest cent.
dcht24111997Lv10
16 Apr 2023
Nelly StrackeLv2
28 Sep 2019
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