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Quantitative Problem 2: Hadley Inc. forecasts the year-end free cash flows (in millions) shown below. 2 3 4 5 $38.8 $43.
Posted: Wed Jul 06, 2022 6:28 pm
by answerhappygod
- Quantitative Problem 2 Hadley Inc Forecasts The Year End Free Cash Flows In Millions Shown Below 2 3 4 5 38 8 43 1 (47.49 KiB) Viewed 22 times
Quantitative Problem 2: Hadley Inc. forecasts the year-end free cash flows (in millions) shown below. 2 3 4 5 $38.8 $43.3 $51.3 $55.3 Year FCF 1 $22.9 The weighted average cost of capital is 12%, and the FCFs are expected to continue growing at a 4% rate after Year 5. The firm has $26 million of market-value debt, but it has no preferred stock or any other outstanding claims. There are 21 million shares outstanding. Also, the firm has zero non-operating assets. What is the value of the stock price today (Year 0)? Round your answer to the nearest cent. Do not round intermediate calculations. $ 125. per share