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.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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