Question

A firm has 120,000 shares of stock outstanding, a sustainable rate of growth of 3.8, and $648,200 in free cash flows. What value would you place on a share of this firm's stock if you require a 10% rate of return? e was $45?

Answer 1

Hello! The answer to your question is as followed:

The value that you would you price on a share of this firm's stock is $52.96