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Title: Overhill Railroads is expected to generate free cash flow of $90 million next year. (Assume that ...
Post by: dez on Apr 26, 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


Title: Overhill Railroads is expected to generate free cash flow of $90 million next year. (Assume that ...
Post by: works123 on Apr 26, 2021
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