Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. huxley building supplies' last free cash flow was

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

60.1K

Verified Solution

Question

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?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

b A system has four non degenerate single particle energy states 0 E 2E and...

Physics
Q

Use the method of cylindrical shells to find the volume V generated by rotating the region...

Basic Math
Q

tail1,tail2 11.5,4 5.3,4.4 9.2,7.9 10.1,9.9 6.3,6 8.2,6.4 9.9,4.3 7.8,8.8 7.9,7.6 8.9,1.5 8.2,4.9 7.2,5.7 8,4 12.1,5.7 10,3.9 6.5,6.9 5.8,6.9 7.6,7.8 11,7 8.9,9.4 6.9,5.4 10.1,1.9 8,6.3 6.1,7.5 9.2,5.4 11.3,9 9.2,8.4 8.7,7.3 7,6.3 9.4,5.1 Conduct a hypothesis test assessing if tail length for species 1 is greater than the tail...

Basic Math
Q

Which structures are highlighted O fascicles O axons Onodes of Ranvier O myelin sheaths Submit...

Biology
Q

Consider the two charges shown below One is positive and one is negative If the...

Physics
Q

If the friction between the two blocks is 9N and ground is perfectly smooth then...

Physics
Q

Find the missing lengths O a b a b a b 15 2 15 2...

Geometry
Q

Which of the following is a correct interpretation of an accounts receivable turnover measure of...

Accounting
Q

Inventories valued on the LIFO basis at December 31, 2016 and 2015 were approximately $47.5...

Accounting
Q

Explain the three ways that overhead costs associated with a companys own leasing staff is...

Accounting
Q

t accounts 1. As you have...

Finance
Q

Presented below is information related to Cullumber Company, owned by D. Flamont, for the month...

Accounting