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Lance Inc.'s free cash flow was just $3.00 million. If the expected long-run growth rate for this company is 8%, weighted average cost of capital is 16%, Lance has $6 million in short-term investments and $4.44 million in de 1 million shares outstanding, what is the intrinsic stock price? $21.03 $19.57 $42.06 $27.70 $31.56

Lance Inc.'s free cash flow was just $3.00 million. If the expected long-run growth rate for this company is 8%, weighted average cost of capital is 16%, Lance has $6 million in short-term investments and $4.44 million in de 1 million shares outstanding, what is the intrinsic stock price? $21.03 $19.57 $42.06 $27.70 $31.56

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 6MC
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Lance Inc.'s free cash flow was just $3.00 million. If the expected long-run growth rate for this company is 8%, if the weighted average cost of capital is 16%, Lance has $6 million in short-term investments and $4.44 million in debt, and 1 million shares outstanding, what is the intrinsic stock price? $21.03 $19.57 $42.06 $27.70 $31.56
Transcribed Image Text:Lance Inc.'s free cash flow was just $3.00 million. If the expected long-run growth rate for this company is 8%, if the weighted average cost of capital is 16%, Lance has $6 million in short-term investments and $4.44 million in debt, and 1 million shares outstanding, what is the intrinsic stock price? $21.03 $19.57 $42.06 $27.70 $31.56
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