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1 A firm has the following expected cash flows: -20, 15,25 (in millions). After year 3, cash flows will grow by a constant role of

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1 A firm has the following expected cash flows: -20, 15,25 (in millions). After year 3, cash flows will grow by a constant role of 5% and the WACC is 10%. If nonoperating assets are 10 million, the market value of debt and preferred stock 160 million and there are 20 million shares outstanding, what is the stock price of this furn? 0 16.09 O 17.87 o 21.23 O 24.40 0 407.43

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