A company’s weighted average cost of capital is 10.8% per year and the market intrinsic value of its debt is $33.1 million. The company’s free cash flow next year is expected to be $4.7 million and the free cash flow is expected to grow forever at a rate of 3.7% per year. If the company has three million shares of common stock outstanding, what is the intrinsic value per share? Question 6 options: A) $13.72 B) $9.48 C) $11.03 D) $12.24 E) $15.12
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A company’s weighted average cost of capital is 10.8% per year and the market intrinsic value of its...
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