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A firm is expected to have free cash flow of $840 million next year. The firm is comprised of 40% debt and 60% common stock.
A firm is expected to have free cash flow of $840 million next year. The firm is comprised of 40% debt and 60% common stock. The WACC is 9% and FCF is expected to grow at 1% indefinitely. If the firm has 105 million shares outstanding, what is the expected value of the firm's stock price?
a.
$100
b.
$40
c.
$60
d.
$75
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