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A company is projected to generate free cash flows of $41 million per year for the...

A company is projected to generate free cash flows of $41 million per year for the next two years, after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is 12.6%. It has $21 million worth of debt and $8 million of cash. There are 11 million shares outstanding. If the appropriate terminal exit value for this company is 15, what's your estimate of the company's stock price? Round to one decimal place.

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Answer #1

An estimate of the company's stock price is $6.1

Kindly refer to the attachment for a detailed discussion.Enterpise Vawe/ Total Valuafon | Coshlo১as1 Cosh Flos Year 2+Tenminal Ve (1+ Cost Coprta) 41+15 l+ Got carital 41 + G+126 56

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