A stock is expected to pay $2 in dividends every year. At what price must it trade to yield a return on equity of 9%?
Our company projects the following FCFs for the next 3 years: $5,000,000; $5,500,000; $6,000,000. Future growth is expected to slow to 5% beyond year 3. If the WACC is 8%, what is the value of the company today?
