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General Industries is expected to generate free cash flows of $22M, $26M, $29M, $30M and $32M, respectively, over the next five years, after which free cash flows are expected to grow at a rate of 3% per year. If the weighted average cost of capital is 8% and General Industries has cash of $10 million, debt of $40 million, and 80 million shares outstanding, what is General Industries' expected current share price?

A) $6.60

B) $6.72

C) $7.67

D) $9.48

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M946376

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