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A companys free cash flows are given as: Year 1 = $5000 Year 2 = $6000 Year 3 = $7000 Year 4 = $8000 An
A companys free cash flows are given as: Year 1 = $5000 Year 2 = $6000 Year 3 = $7000 Year 4 = $8000 An expert analysis shows that after 4 years (t=4), the free cash flow of the company will grow at a constant rate of 7% per year. The expert evaluates that the weighted average cost of capital of the company is 11%. Also, the total market value of debt and preferred stock of the company is $30,000. Outstanding shares of common stock are 1000. Calculate the intrinsic value per share of the common stock of the company.
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