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A company is projected to generate free cash flows of $165 million next year and $200 million at the end of year 2, after which
A company is projected to generate free cash flows of $165 million next year and $200 million at the end of year 2, after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is 11.0%. It has $150 million worth of debt and $60 million of cash. There are 25 million shares outstanding. If the exit multiple for this company's free cash flows (EV/FCFF) is 6.0, what's your estimate of the company's stock price? Round to one decimal place.
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