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Hadley Inc forecasts the year-end free cash flows in millions shown below Year 1 2 3 4 5 FCF -$22.02 $38 $43.2 $51.7 $55.1 The weighted average cost of capital is

Hadley Inc. forecasts the year-end free cash flows (in millions) shown below. Year 1 2 3 4 5 FCF -$22.02 $38 $43.2 $51.7 $55.1 The weighted average cost of capital is 10%, and the FCFs are expected to continue growing at a 4% rate after Year 5. The firm has $25 million of market-value debt, but it has no preferred stock or any other outstanding claims. There are 20 million shares outstanding. Also, the firm has zero non-operating assets. What is the value of the stock price today (Year 0)? Round your answer to the nearest cent. Do not round intermediate calculations. $ per share

Aug 16 2020 View more View Less

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