A company is expected to have free cash flows of $0.75 million next year. The weighted average cost of capital is WACC = 10.5%, and the expected constant growth rate is g = 6.4%. The company has $2 million in short-term investments, $2 million in debt, and 1 million shares. What is the stock's current intrinsic stock price?
A. $17.39
B. $17.84
C. $18.29
D. $18.75
E. $19.22
Answer: C
You might also like to view...
The mental position a person takes about a topic, person, or event is called a(n):
A) value B) attitude C) level of involvement D) cognition
Surveillance is usually used to investigate:
a. Theft acts. b. Concealment possibilities. c. Conversion possibilities. d. Key internal controls.
Effective followership is ______.
a. important to the leader, but not part of the LMX relationship b. important to leader-member exchange, but not part of the LMX relationship c. important to the LMX relationship d. not important to the leader, the LMX relationship, or the organization
Direct marketers can minimize waste circulation of catalogs through use of current and highly targeted mailings
Indicate whether the statement is true or false