Answer:
stock price =$87.12
Explanation:
stock price is given as[tex]stock price = \frac{\frac{free\ cash\ flow}{required\ rate - growth\ rate}}{number\ of\ outstanding\ shares }[/tex]
where,
free casg flow = $6,48,200
required growth = 10%
growth rate = 3.8% = .038
number of outstanding shares = 120,000
putting all value to get stock price[tex]stock price = \frac{\frac{648,200}{0.10 -.038}}{120,000}[/tex]
stock price =$87.12
