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A firm will have the following FCFs for years 15 : $10 million, $12 million, $14 million, $18 million and $21 million. After year 5
A firm will have the following FCFs for years 15 : $10 million, $12 million, $14 million, $18 million and $21 million. After year 5 , the FCFs are expected to grow at a constant 2%/y ear. The WACC for the firm is 9\%/year. If the firm has $20 million in debt, $15 million in cash and 10 million shares outstanding, what is the share price, P0 ? \begin{tabular}{c} $6.75 \\ $67.50 \\ \hline$91.36 \\ \hline$25.04 \\ \hline$43.16 \end{tabular}
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