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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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