Question
ABC Corporation's latest free cash flow (FCF0) was $17.50 million. The growth rate in FCFs is assumed to be constant at the rate of 7%
ABC Corporation's latest free cash flow (FCF0) was $17.50 million. The growth rate in FCFs is assumed to be constant at the rate of 7% a year for future periods. ABC has 15 million shares of common stock outstanding and $125 million of long-term debt, including preferred stock. The WACC of the corporation is 10%. What is the value of the entire corporation? What is ABC's common stock value? What is the ABC's estimated price per share?
Additional Instruction: Accepted characters: numbers, decimal point markers, sign indicators (-), spaces (e.g., as thousands separator, 5 000), "E" or "e" (used in scientific notation). NOTE: For scientific notation, a period MUST be used as the decimal point marker. Complex numbers should be in the form {a + bi} where "a" and "b" need to have explicitly stated values. For example: {1+1i} is valid whereas {1+i} is not. {0+9i} is valid whereas {9i} is not.
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