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10. Apple makes a surprise announcement today that they are switching their iPhone glass supplier from sapphire screens to Gorilla Glass, made by Corning, for
10. Apple makes a surprise announcement today that they are switching their iPhone glass supplier from sapphire screens to Gorilla Glass, made by Corning, for the next five years. This will result in an additional $450 million in free cash flow for Corning, starting in one year, and growing at 5% per year thereafter through year 5. Corning has 951 million shares outstanding, 100 million net debt, and a WACC of 8.0%. How would the additional free cash flow move Corning stock price when Apple made this announcement? (2 pt)
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