Use the Table for the Question(s)below

question 24

Multiple Choice

Use the table for the question(s) below.

-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 3% per year.If the weighted average cost of capital is 8% and General Industries has cash of $10 million,debt of $40 million,and 80 million shares outstanding,what is General Industries' expected current share price?

• A)$6.60
• B)$6.72
• C)$7.67
• D)$9.48
• E)$10.53

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