River Enterprises has $504 million in debt and 22 million shares of equity outstanding. Its excess cash reserves are $16

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River Enterprises Has 504 Million In Debt And 22 Million Shares Of Equity Outstanding Its Excess Cash Reserves Are 16 1 (49.52 KiB) Viewed 77 times

River Enterprises has $504 million in debt and 22 million shares of equity outstanding. Its excess cash reserves are $16 million. They are expected to generate $195 million in free cash flows next year with a growth rate of 2% per year in perpetuity. River Enterprises' cost of equity capital is 13%. After analyzing the company, you believe that the growth rate should be 3% instead of 2%. How much higher in dollars) would the price per share be if you are right? If the growth rate is 2%, the price per share is $1. (Round to the nearest cent.) If the growth rate is 3%, the price per share is $. (Round to the nearest cent.) If you are right and the growth rate is 3%, the price per share would be $ higher. (Round to the nearest cent.)