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A company generated a free cash flow of $50 million in its most recent fiscal...

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Finance

A company generated a free cash flow of $50 million in its most recent fiscal year. The companys FCFF is expected to grow 6% for one year, followed by a stable growth rate of 3% thereafter in perpetuity. The company's cost of capital is 7%. It has $7 million of debt and $1 million of cash. There are 30 million shares outstanding. How much is each share worth based on these projections? a. $21.9 b. $25.0 c. $29.2 d. $35.1 e. $44.0

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