A companys weighted average cost of capital is 10 per year


A company’s weighted average cost of capital is 10% per year and the market value of its debt is $54.2 million. The company’s free cash flow last year was $32.15 million and it is expected to grow 12% per year for the next three years. Thereafter, the free cash flow is expected to grow forever at a rate of 4% per year. If the company has sixteen million shares of common stock outstanding, what is the value per share?

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Financial Management: A companys weighted average cost of capital is 10 per year
Reference No:- TGS02303618

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