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Assume that today is December 31, 2020 and that the following information applies to Abner Airlines: - After tax operating income (EBIT (1-T)) for 2021

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Assume that today is December 31, 2020 and that the following information applies to Abner Airlines: - After tax operating income (EBIT (1-T)) for 2021 is expected to be $400 Million. Depreciation expense for 2021 is expected to be $140 Million - The capital Expenditures for 2021 are expected to be $225 Million - No Change is expected in Net Operating Working Capital - The Free Cash Flow is expected to grow at a constant rate of 3% per year - The required return on Equity is 8% - The Company has 200 million shares outstanding and no debt in the books. Using a discounted free cash flow model, what should the stock price for Abner Airlines be? (SHOW ALL YOUR CALCULATIONS FOR FULL/PARTIAL CREDIT)

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