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Huxley Building Supplies' last free cash flow was $1.75 million. Its free cash flow growth...

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Accounting

Huxley Building Supplies' last free cash flow was $1.75 million. Its free cash flow growth rate is expected to be constant at 25% for 2 years, after which free cash flows are expected to grow at a rate of 6% forever.

Its weighted average cost of capital WACC is 12%. Huxley has $5 million in short-term investments and $7 million in debt and has 1 million shares outstanding.

What is the best estimate of the current intrinsic stock price?

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