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5. Suppose Shakespeare's Pizza projects the following cash flows from assets over the next two years and expects cash flow from assets to grow at

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5. Suppose Shakespeare's Pizza projects the following cash flows from assets over the next two years and expects cash flow from assets to grow at a constant six percent rate in perpetuity. The company's appropriate WACC is 10 percent given the observed rate of similar peers. If the company has a market value of $5 million in debt and 1 million shares outstanding, the combined market value of the company's debt and equity is the market value of equity is and the price per share of the company based on this equity valuation and the number of shares outstanding is (Hint: Recall the Market Value of Equity = Market Value of Company - Market Value of Debt) (a) \$28.44 million; \$33.44 million; \$33.44 per share (b) \$28.44 million; \$23.44 million; \$23.44 per share (c) \$24.46 million; \$29.46 million; \$29.46 per share (d) $24.46 million; $19.46 million; $19.46 per share

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