What is the best estimate of the intrinsic stock price

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Atchley Corporation’s last free cash flow was $1.55 million. The free cash flow growth rate is expected to be constant at 1.5% for 2 years, after which free cash flows are expected to grow at a rate of8.0% forever. The firm's weighted average cost of capital (WACC) is 12.0%. Atchley has $3.5 million in short-term debt and $14 million in debt and 1 million shares outstanding. What is the best estimate of the intrinsic stock price?

Reference no: EM131013784

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