Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The following table shows projected free cash flows for the next four years for Quick Sky Corp., a company producing wind turbines.
Year
2
2
3
Free Cash Flow
(Millions of dollars)
3.10
3.41
3.75
4.13
After the four year period, Quick Sky is expected to grow at a constant rate of 10% and its WACC is 15%. Quick Sky has $25 million of
debt and $180 million shares of stock outstanding.
Quick Sky's value today is
million and the price per share today is
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Transcribed Image Text:The following table shows projected free cash flows for the next four years for Quick Sky Corp., a company producing wind turbines. Year 2 2 3 Free Cash Flow (Millions of dollars) 3.10 3.41 3.75 4.13 After the four year period, Quick Sky is expected to grow at a constant rate of 10% and its WACC is 15%. Quick Sky has $25 million of debt and $180 million shares of stock outstanding. Quick Sky's value today is million and the price per share today is
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