Intrinsic value of the stock of harkleroad technologies

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An analyst is trying to estimate the intrinsic value of the stock of Harkleroad Technologies. The analyst estimates that Harkleroad’s free cash flow during the next year will be $30 million. The analyst also estimates that the company’s free cash flow will increase at a constant rate of 7.5 percent a year and that the company’s WACC is 11 percent. Harkleroad has $225 million of long-term debt and preferred stock, and 35 million outstanding shares of common stock. What is the estimated per-share price of Harkleroad Technologies’ common stock to 2 decimal places?

Reference no: EM131911677

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