43. ABC Company is expected to generate P150 million in free cash flow next year, and it is expected to grow at a constant rate of 5% per year indefinitely. ABC has no debt or preferred stock, and its WACC is 10%. If ABC has 50 million shares of stock outstanding, what is the stock's value per share? [nearest peso
43. ABC Company is expected to generate P150 million in free cash flow next year, and it is expected to grow at a constant rate of 5% per year indefinitely. ABC has no debt or preferred stock, and its WACC is 10%. If ABC has 50 million shares of stock outstanding, what is the stock's value per share? [nearest peso
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter11: Determining The Cost Of Capital
Section: Chapter Questions
Problem 15P: WACC Estimation
On January 1, the total market value of the Tysseland Company was $60 million....
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