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  1. business
  2. accounting
  3. a company is projected to generate free cash flows

A company is projected to generate free cash flows of $43 million per year for...

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Accounting

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A company is projected to generate free cash flows of $43 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 12.3%. It has $21 million worth of debt and $7 million of cash. There are 11 million shares outstanding. If the exit multiple for this company's free cash flows (EV/FCFF) is 15, what's your estimate of the company's stock price? Round to one decimal place. Numeric Answer: 57.4 You are incorrect 57.4

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