What is your estimate of the current share price

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Industrial Bruin Lights is expected to have $12 millions in free cash flows next year.

The growth rate of free cash flows is expected to be 14% in the following year, 12% in the year after that, and continue declining by 2% until it reaches 6%, where it is expected to remain indefinitely. The firm has no debt, and there are 6 million shares outstanding.

Investors require 15% return on the company stock. The tax rate is 40%. What is your estimate of the current share price?

Reference no: EM131926728

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