The firm has 26 million of market-value debt but it has no


Hadley Inc. forecasts the year-end free cash flows (in millions) shown below. Year 1 2 3 4 5 FCF -$22.8 $38.1 $43.7 $51 $55.3 The weighted average cost of capital is 9%, and the FCFs are expected to continue growing at a 4% rate after Year 5. The firm has $26 million of market-value debt, but it has no preferred stock or any other outstanding claims. There are 20 million shares outstanding. What is the value of the stock price today (Year 0)? Round your answer to the nearest cent. Do not round intermediate calculations. $ ____ per share

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The firm has 26 million of market-value debt but it has no
Reference No:- TGS02837996

Expected delivery within 24 Hours