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Can you please help me answer this question? Thank you Huxley Building Supplies' last free cash flow was $1.75 million. Its free cash flow growth
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Huxley Building Supplies' last free cash flow was $1.75 million. Its free cash flow growth rate is expected to be constant at 25% for 2 years, after which free cash flows are expected to grow at a rate of 6% forever. Its weighted average cost of capital WACC is 12%. Huxley has $5.5 million in short-term investments and $9 million in debt and has 1 million shares outstanding. What is the best estimate of the current intrinsic stock price? a. $41.71 b. $39.14 c. $40.64 d. $42.80 e. $44.92Step by Step Solution
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