Question
Assume the following expected free cash flows for Peterson Corporation for 2017: Current Forecast Horizon Terminal...
- Assume the following expected free cash flows for Peterson Corporation for 2017:
|
Current |
Forecast Horizon |
Terminal Year |
||||
|
2017 |
2018 |
2019 |
2020 |
2021 |
||
|
Free cash flows to the firm (FCFF) |
$4,651 |
$4,884 |
$5,128 |
$5,384 |
$5,653 |
$5,766 |
The company has net nonoperating obligations (NNO) of $12,000 and 3,000 shares outstanding.
Calculate the per share stock price using the FCFF information above, a discount rate of 7%, and a terminal growth rate of 2%.
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