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5) Common Corp. only offers common shares and has no debt. They are currently generating a return on equity of 15%, typically retain half of
5) Common Corp. only offers common shares and has no debt. They are currently generating a return on equity of 15%, typically retain half of any profit they earn, and the market discount rate is 12.5%. Suppose there are 5,000 shares of Common Corp. outstanding. a) If Common Corp. just generated S2,000 of free cash flow, what is their market value? b)What should the price of a common share of Common Corp. be today
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