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Industrial Camel Lights is expected to have $20 millions in free cash flows next year. The growth rate of free cash flows is expected to be 14% in the following year, 12% in the year after that, and continue declining by 2% until it reaches 6%, where it is expected to remain indefinitely.

The firm has no debt, and there are 6 million shares outstanding. Investors require 15% return on the company stock. The tax rate is 40%.

What is your estimate of the current share price?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91773513

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