What should the price of portage bay''s stock be

Reference no: EM13864990

Portage Bay Enterprises has $1 million in excess cash, no debt and is expected to have free cash flow of $10 million next year. Its FCF is then expected to grow at a rate of 3% per year forever. If Portage Bay's equity cost of capital is 11% and it has 5 million shares outstanding, what should the price of Portage Bay's stock be?

Reference no: EM13864990

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What should the price of portage bay''s stock be : Portage Bay Enterprises has $1 million in excess cash, no debt and is expected to have free cash flow of $10 million next year. Its FCF is then expected to grow at a rate of 3% per year forever. If Portage Bay's equity cost of capital is 11% and it h..

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