What should be the price of portage bay stock

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Portage Bay Enterprises has $ 3 million in excess cash, no debt and is expected to have free cash flow of $ 15 million next year. Its FCF is then expected to grow at a rate of 4 % per year forever. If Portage Bay's equity cost of capital is 12 % and it has 7 million shares outstanding, what should be the price of Portage Bay stock. The price of Portage Bay's stock is $nothing per share. (Round to the nearest cent.)

Reference no: EM132066644

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