in River Enterprises has $495 million in debt and 21 milion shares of equity outstanding its excess cash reserves are $1

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In River Enterprises Has 495 Million In Debt And 21 Milion Shares Of Equity Outstanding Its Excess Cash Reserves Are 1 1 (20.48 KiB) Viewed 98 times

in River Enterprises has $495 million in debt and 21 milion shares of equity outstanding its excess cash reserves are $15 million. They are expected to generate $209 million in free cash flows next year with a growth rate of 2% per year in perpetuity, River Enterprises cost of equity capital is 11%. After analyzing the company, you believe that the growth rate should be 3% instead of 2%. How much higher (in dollars) would the price por share be if you are right? K If the growth rate is 2%, the price per share is $. (Round to the nearest cont.) If the growth rate is 3%, the price per share is $ (Round to the nearest cont) If you are right and the growth rate is 3%, the price per share would be $ I higher. (Round to the nearest cent) Test