General Industries Is Expected to Generate the Above Free Cash

question 27

Multiple Choice

General Industries is expected to generate the above free cash flows over the next five years, after which free cash flows are expected to grow at a rate of 5% per year. If the weighted average cost of capital is 9% and General Industries has cash of $15 million, debt of $45 million, and 80 million shares outstanding, what is General Industries' expected current share price?

• A)$7.78
• B)$8.17
• C)$9.34
• D)$11.67

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Definitions:

Gender-bending

The act of defying or questioning traditional gender roles through one's actions, appearance, or demeanor.

Extended Self

A concept in consumer behavior that suggests individuals' possessions and their associations significantly contribute to and reflect their identities.

Extended Self

The idea that people's possessions and their association with those possessions form a part of their identities and self-concepts.

Communal

Referring to sharing or holding in common by a community or group, often related to resources or living spaces.