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Anderson Corporation expects to generate free-cash flows of $500,000 per year for the next five years. Beyond that time, free cash flows are expected to

Anderson Corporation expects to generate free-cash flows of $500,000 per year for the next five years. Beyond that time, free cash flows are expected to grow at a constant rate of 6 percent per year forever. If the firm's average cost of capital is 15 percent, the market value of the firm's debt is $600,000, and Anderson has a half million shares of stock outstanding, what is the value of Anderson's stock?

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