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The following table shows projected free cash flows for the next four years for Quick Sky Corp, a company producing wind turbines. Free Cash Flow Year (Millions of dollars) 1 9.55 2 10.22 10.94 11.71 After the four year period, Quick Sky is expected to grow at a constant rate of 7% and its WACC is 15%. Quick Sky has $20 million of debt and $135 million shares of stock outstanding.

The following table shows projected free cash flows for the next four years for Quick Sky Corp, a company producing wind turbines. Free Cash Flow Year (Millions of dollars) 1 9.55 2 10.22 10.94 11.71 After the four year period, Quick Sky is expected to grow at a constant rate of 7% and its WACC is 15%. Quick Sky has $20 million of debt and $135 million shares of stock outstanding.

Essentials Of Investments
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
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Now it's time for you to practice what you've learned. The following table shows projected free cash flows for the next four years for Quick Sky Corp, a company producing wind turbines. Year 1 2 3 4 Free Cash Flow (Millions of dollars) 9.55 10.22 10.94 11.71 After the four year period, Quick Sky is expected to grow at a constant rate of 7% and its WACC is 15%. Quick Sky has $20 million of debt and $135 million shares of stock outstanding. Quick Sky's value today is million and the price per share today is
Transcribed Image Text:Now it's time for you to practice what you've learned. The following table shows projected free cash flows for the next four years for Quick Sky Corp, a company producing wind turbines. Year 1 2 3 4 Free Cash Flow (Millions of dollars) 9.55 10.22 10.94 11.71 After the four year period, Quick Sky is expected to grow at a constant rate of 7% and its WACC is 15%. Quick Sky has $20 million of debt and $135 million shares of stock outstanding. Quick Sky's value today is million and the price per share today is
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