Whats the estimated stock price

Reference no: EM133492051

Question: For a nonconstant free cash flow (FCF) growth stock: FCF1 = -$5 million; FCF2 = $10 million; FCF3 = $30 million. The free cash flow (FCF) grows at a constant rate of 6% after year 3. The weighted average cost of capital is 10%. The firm has $20 million in debt and $20 million of preferred stocks. It has 10 million outstanding shares. What's the estimated stock price based on the corporate valuation model.

Reference no: EM133492051

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