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Business, 28.06.2020 06:01 JBBunny

River Enterprises has $502 million in debt and 22 million shares of equity outstanding. Its excess cash reserves are $ 15 million. They are expected to generate $195 million in free cash flows next year with a growth rate of 2% per year in perpetuity. River Enterprises' cost of equity capital is 13%. After analyzing the company, you believe that the growth rate should be 3% instead of 2%. How much higher (in dollars) would the price per share be if you are right? g

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River Enterprises has $502 million in debt and 22 million shares of equity outstanding. Its excess c...
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