A companys free cash flow fcf is expected to be 12 million


A company's free cash flow (FCF) is expected to be $(12) million {negative $12 million} next year, $27 million in the second year, and $37 million in the third year. The FCF is expected to increase at the rate of 3% thereafter. The WACC for the company is 10%. The company's balance sheet shows $50 million in short-term investments that are unrelated to operations. The balance sheet also shows $60 million in accounts payable, $80 million in notes payable, $40 million in long-term debt, $20 million preferred stock, and $100 million in total common equity. If the company has 5 million shares of stock, what is your best estimate for the stock price per share?

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Financial Management: A companys free cash flow fcf is expected to be 12 million
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