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problem: Rock Hard Corp expects the following free cash flows in millions over the next five years

1          150

2          200

3          180

4          210

5          300

After the 5th year, free cash flows are expected to grow at five percent per year.  Using the discounted free cash flow model and a weighted average cost of capital if 15 percent

[A] find out the enterprise value of Rock Hard
[B] Rock hard has excess cash of dollar 20 million, debt of dollar 550 million, & dollar 80 million shares outstanding, find out its stock price.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M917839

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