stetson building supplies last free cash flow was 1.85 million. its free cash flow growth...
50.1K
Verified Solution
Link Copied!
Question
Accounting
stetson building supplies last free cash flow was 1.85 million. its free cash flow growth rate was expected to be at 25% for year 1 and 12% for year 2, after which free cash flows are expected to grow at a rate of 6% forever? its weighted average cost of capital WALL (or r) is 12%. stetson has 5 million in short term inverstments and 7 million in debt and has 2 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!
