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A firm with no debt is expected to have free cash flow of $80 million next year. The firm is comprised of 80% preferred stock
A firm with no debt is expected to have free cash flow of $80 million next year. The firm is comprised of 80% preferred stock and 20% common stock. The WACC is 11% and FCF is expected to grow at 4% indefinitely. If the firm has 15 million common shares outstanding, what is the expected value of the firm's common stock price?
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