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A company is projected to generate free cash flows of $10 million per year for the next two years, followed by a stable growth of
A company is projected to generate free cash flows of $10 million per year for the next two years, followed by a stable growth of 2.5% per year in perpetuity. The company's cost of capital is 9%. It has $5 million worth of debt and $1 million of cash. There are 12 million shares outstanding. What's the estimated stock price based on these projections? Round to the nearest cent. Please show work.
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