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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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