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5 . You have the following information to determine the per share value of a stock using the free cash flow ( FCF ) method

5. You have the following information to determine the per share value of a stock using the free cash flow (FCF) method of valuation:
The firm has 1.852 billion shares outstanding.
The market value of its debt is $3.192 billion.
The free cash flow is currently $1.1559 billion.
The firms equity beta is 0.90; the equity risk premium is 5.5%; the risk-free rate is 5.5%.
The before-tax cost of debt is 7%.
The tax rate is 40%.
The firm has a capital structure of 75% equity and 25% debt.
The FCF rate of growth is 3%.
Based on the above information, calculate the following:
a. WACC
b. Value of the firm (using the WACC as the discount rate)
c. Total market value of equity
d. Value per share

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