Hey all - So my head is splitting over this question and I've worked way too long (over an hour) on trying to figure out the answer. I'm hoping someone can point me in the right direction if possible!
Company A generated a $86 million in FCF this year. Their FCF is expected to grow 10% each year for the next two years. After that time, their FCF is expected to level off to the industry long-term growth rate of 4% per year. If the WACC is 11% and the company has cash of $100 million, debt of $275 million, and 100 million shares outstanding, what is A’s current share price?
a) $11.03 b) $11.60 c) $15.99 d) $12.49
I know the answer isn't C... Any help would be appreciated!
Submitted November 07, 2017 at 11:59AM by MarqGuy917 http://ift.tt/2hb15nB
