You are given the following information for a firm: FCF for a firm Growth Rate of FCF Asset Beta Risk Free Rate $18.2milions 3.6% - 1.5 3% 6.7% Market Risk Premium Number of Shares outstanding 2,000,000 Using the above data, what is the price per share in dollars?

You are given the following information for a firm: FCF for a firm Growth Rate of FCF Asset Beta Risk Free Rate $18.2milions 3.6% - 1.5 3% 6.7% Market Risk Premium Number of Shares outstanding 2,000,000 Using the above data, what is the price per share in dollars?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

You are given the following information for a firm:
FCF for a firm
Growth Rate of FCF
Asset Beta
Risk Free Rate
=
$18.2milions
3.6%
1.5
3%
6.7%
Market Risk Premium
Number of Shares outstanding
Using the above data, what is the price per share in dollars?
2,000,000

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