Free Cash Flow Year 1 $21 million Year 2 $26 million Year 3 $28 million Year 4 $31 million Year 5$33 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 2% per year. If the weighted average cost of capital is 9% and XYZ has cash of $11 million, debt of $39 million, and 79 million shares outstanding, what is General Industries' expected current share price?
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