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( 1 5 points ) AGE Corporation had sales of $ 4 0 0 million last year. The firm has a WACC of 1 5
points AGE Corporation had sales of $ million last year. The firm has a WACC of
which it is expected to be the same in the future. The current estimated cost of debt is
AGE Corp has an outstanding perpetual bond that pays interest annually and has a
face value of $ million. The firm has an excess cash of $ million and intends to keep
that amount of excess cash in the future. It has outstanding shares of million. Safe
assumptions regarding the next five years are given below Depreciation expenses and
CAPEX are measured as a percentage of sales, where the change in NWC is a result of the
changes in sales It is expected that the firm will enter a stable stage starting in the sixth year
and the FCFs will grow by annually. The corporate tax rate is percent. What is your
estimate of the current stock price?
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