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A firm currently has 1 million shares outstanding and has an expected value of $40 million in the next year. It will have expected free

A firm currently has 1 million shares outstanding and has an expected value of $40 million in the next year. It will have expected free cash flow of $5 million next year and will distribute a $5 per share cash dividend. The appropriate discount rate is 10%. What is the share price in the next year and the current year, respectively?

Group of answer choices

$45 and $40

$45 and $42.32

$55 and $50

$45 and $40.91

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