What is cwi current price per share

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Cool-Waves Inc. (CWI) is a newly incorporated firm that produces trendy and innovative clothing for young adults. The company is exhibiting rapid growth. It has current free cash flows of $25 million which are expected to increase at the rate of 18% for the next 5 years. However, after this period of high growth, as the novelty of its products wears off, the growth rate of CWI free cash flows will decline by 2% per year for the next 4 years and thereafter remain constant for the foreseeable future. CWI has a weighted average cost of capital of 14%. The company currently has $15 million of debt selling at 10% below par, and 200 million outstanding shares. It also has $ 120 million in cash. What is CWI's current price per share? (Hint:Take period 4 as the new time 0 for the second timeline and period 9 as the new time 0 for the third timeline.)

Reference no: EM132747274

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