Company has the following cash flow stream.   CF1 = 366 CF2 = 686 CF3 = 931 CF4 = 933   Cash flow is expected to be constant after year 4, with a growth rate of 4%. The WACC is 10%. In addition, company has 34 millions debt, with 56 millions shares outstanding. What is the stock price, P0 , today?

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Company has the following cash flow stream.

 

CF1 = 366

CF2 = 686

CF3 = 931

CF4 = 933

 

Cash flow is expected to be constant after year 4, with a growth rate of 4%. The WACC is 10%. In addition, company has 34 millions debt, with 56 millions shares outstanding. What is the stock price, P0 , today?

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