What is expected current share price

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Reference no: EM131070544

General Industries is expected to generate $22 million, $26 million, $29 million, $30 million and $32 million in free cash flows 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

Reference no: EM131070544

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