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Assume the following expected free cash flows for Flying Inc. for 2012: Current Forecast Horizon Terminal Year ($ thousands) 2012 2013 2014 2015 2016 Free

Assume the following expected free cash flows for Flying Inc. for 2012:

Current

Forecast Horizon

Terminal Year

($ thousands)

2012

2013

2014

2015

2016

Free cash flows to the firm (FCFF)

2,456

2,985

3,928

4,268

5,038

5,589

The company has net nonoperating obligations (NNO) of $80,000 and 6,000 shares outstanding. Calculate the per share stock price using the FCFF information above, a discount rate of 6%, and a terminal growth rate of 3%.

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