Question

Smith Technologies is expected to generate $125 million in free cash flow next year, and FCF is expected to grow at a constant rate of 3% per year indefinitely. Smith has no debt or preferred stock, and its WACC is 14%. If Smith has 45 million shares of stock outstanding, what is the stock's value per share?

Apr 24, 2013

2.6
/
5.63

Nov 13, 2013

Related Questions

You have been assigned the task of using the corparate ,or free cash flow , model to estimate Petry'... A company is planning to open 100 new outlets that are expected to generate, in total, $15 million... What is the value of a building that is expected to generate fixed annual cash flows of 124,250 doll...