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Carter Technologies is expected to generate $150 million in free cash flow next year, and FCF is expected to grow at a constant rate of
Carter Technologies is expected to generate $150 million in free cash flow next year, and FCF is expected to grow at a constant rate of 7.5 percent per year indefinitely. Carter has no debt or preferred stock, and its weighted-average cost of capital is 11 percent. If Carter has 55 million shares of stock outstanding, what is the stocks value per share?
a. | $86.49 | |
b. | $83.77 | |
c. | $72.49 | |
d. | $77.92 | |
e. | $42.86 |
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