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Assume we are standing at the end of Year 2016, the following information applies to Vermeil Airlines during the year 2017: After-tax operating income [EBIT(1
Assume we are standing at the end of Year 2016, the following information applies to Vermeil Airlines during the year 2017: After-tax operating income [EBIT(1 - T)] for 2017 is expected to be $600 million. The depreciation expense for 2017 is expected to be $400 million. The capital expenditures for 2017 are expected to be $200 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 after 2016. The WACC is 10%. The market value of the company's debt is $5 billion. $3 billion shares of stock are outstanding. What should be the current stock price per share of the company (2016)? $4 $1 $5 $2 $3
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