Your company is forecasting cash flows of 15 million next


Your company is forecasting cash flows of $15 million next year, $25 million in year 2 and $40 million in year 3. After that growth in cash flows is expected to level out at 5% per year. Your company has $150 million in marketable securities and $350 million in interest bearing debt. If the cost of capital is 10% and there are 10 million shares outstanding what is the price per share of stock?

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Financial Management: Your company is forecasting cash flows of 15 million next
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