BH Corp's free cash flow to equity holders is expected to be $114 million for years 1-3 and is projected to grow at a rate of 2% afterwards. There are 20 million shares of equity outstanding. What is the predicted price of the stock if the cost of equity is 15%? Round your answer to two decimal places and enter it without the dollar sign.
BH Corp's free cash flow to equity holders is expected to be $114 million for years 1-3 and is projected to grow at a rate of 2% afterwards. There are 20 million shares of equity outstanding. What is the predicted price of the stock if the cost of equity is 15%? Round your answer to two decimal places and enter it without the dollar sign.
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 15P
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