Company a has 5 in cash 30 in debt no non-operating assets


Company A expects free cash flows of $5, $10, and $15 in years one through three, after which free cash flows are expected to grow at a rate of 5% forever. Assume Company A’s WACC is 15%. Company A has $5 in cash, $30 in debt, no non-operating assets, and 10 common shares outstanding. What is Company A’s share price? Round to two decimal places. Do not include dollar signs ($) or commas (,) in your answer.

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Financial Management: Company a has 5 in cash 30 in debt no non-operating assets
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