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A firms expected free cash flow is $25.2 million beginning in one year and continuing in perpetuity at a growth rate of 3.5% and a
A firms expected free cash flow is $25.2 million beginning in one year and continuing in perpetuity at a growth rate of 3.5% and a WACC of 15.5%. It has 85 million shares outstanding. It also has bonds with a total market value of $0.875 billion and holds $1,365 million in cash. What is its stock price according to the FCF Method? A) $7.90 B) $8.24 (ANSWER) C) $2.69 D) $2.47
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