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A firm is expected to make $2 in free cash flow per share next year. Its free cash flow is then expected to grow by
A firm is expected to make $2 in free cash flow per share next year. Its free cash flow is then expected to grow by 2.5% per year, forever. The firms cost of equity (discount rate on equity) is 9.5%. What is the fair price of the firms stock?
$21.05
$28.57
$14.11
$76.53
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