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ACME Transmission Inc. is a tier 1 auto parts supplier. Analysts expected ACME to generate free cash flow of $ 2 billion in one year.
ACME Transmission Inc. is a tier auto parts supplier. Analysts expected ACME to generate free cash flow of $ billion in one year. Assume that cash flows occur on December and today is January Analysts expect the cash flows to grow at in perpetuity. ACME has $ billion of debt, which is equal to of its value and it is committed to maintaining that ratio in perpetuity. The required return of shareholders is and the required return of lenders is The tax rate is There are billion shares outstanding. What is the fair price for ACMEs shares? Round your answer to the nearest cent.
ACME Transmission Inc. is a tier auto parts supplier. Analysts expected ACME to generate free cash flow of $ billion in one year. Assume that cash flows occur on December and today is January Analysts expect the cash flows to grow at in perpetuity. ACME has $ billion of debt, which is equal to of its value and it is committed to maintaining that ratio in perpetuity. The required return of shareholders is and the required return of lenders is The tax rate is There are billion shares outstanding. What is the fair price for ACMEs shares? Round your answer to the nearest cent.
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