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Assume that today is December 31,2018 and that the following information applies to Vermeil Airlines: After-tax operating income [EBIT(1 T)] for 2019 is expected to

Assume that today is December 31,2018 and that the following information applies to Vermeil Airlines: After-tax operating income [EBIT(1 T)] for 2019 is expected to be $435 million. The depreciation expense is expected to be $97 million. The capital expenditures are expected to be $216 million. No change is expected in net operating working capital. The free cash flow is expected to grow at a constant rate of 6% per year. The required return on equity is 12.7%. The WACC is 10.5%. The market value of the companys debt is $2.7 billion. 186 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the companys stock price today?

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