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Calculate what you think the share price for company X should be given the following information and modelling firm value as a perpetuity with growth:

Calculate what you think the share price for company X should be given the following information and modelling firm value as a perpetuity with growth:

Cash Flow From Operations= 15,500m

Capital Expenditure= 4,600m

Interest Expense= 950m

Corporate Tax= 30%

Growth rate = 2% every year

Cash on Balance Sheet = 6,200m

Number of Shares = 5,000m

Total Debt = 8,000m

Total Equity= 90,000m

Cost of Equity re= 9.5%

Cost of Debt rd = 4%

If the share currently costs $12 in the market, what action would you take?

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