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Author Question: Overhill Railroads is expected to generate free cash flow of $90 million next year. (Assume that ... (Read 75 times)

ereecah

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on: Apr 25, 2021
Overhill Railroads is expected to generate free cash flow of $90 million next year. (Assume that free cash flow is paid at the end of each year and we are at the beginning of a year.) After that, free cash flow is forecast to go grow at 1.20% per annum in perpetuity. The WACC for Overhill Railroads is 11%. The firm has 20.75 million shares outstanding and the market value of its debt is $100 million. What is the fair price for Overhill Railroads' shares today?
◦ $35.53
◦ $36.33
◦ $39.44
◦ $41.11
◦ $44.26
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by ereecah on Apr 25, 2021

ktidd

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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ereecah

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Reply 2 on: Apr 25, 2021
Excellent

Liddy

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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