ortage Bay Enterprises has no debt, $1.2 million in cash, and is expected to have free cash flow of $14 million next year. It is then expected to grow at a rate of 2% er year forever. If Portage Bay's equity cost of capital is 13% and it has 8 million shares outstanding, what should the price of Portage Bay's stock be? me price of Portage Bay's stock is $ 129.81 per share. (Round to the nearest cent.)

ortage Bay Enterprises has no debt, $1.2 million in cash, and is expected to have free cash flow of $14 million next year. It is then expected to grow at a rate of 2% er year forever. If Portage Bay's equity cost of capital is 13% and it has 8 million shares outstanding, what should the price of Portage Bay's stock be? me price of Portage Bay's stock is $ 129.81 per share. (Round to the nearest cent.)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 9MC

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