4. (TCO B)
You expect CCM Corporation to generate the following free cash flows over the next 5 years.
Year
1
2
3
4
5
FCF ($ millions)
25
28
32
37
40
If CCM has $150 million of debt and 12 million shares of stock outstanding, then which is the share price for CCM closest to?
A) $49.50
B) $11.25
C) $20.50
D) $22.75