Question
Cash ($ millions)800 Current portion of long-term debt (in $ millions) 500 Expected free cash flow to the firm in 1 year(in $ millions)1,000 Expected
Cash ($ millions)800
Current portion of long-term debt (in $ millions) 500
Expected free cash flow to the firm in 1 year(in $ millions)1,000
Expected free cash flow to the firm in 2 years(in $ millions)1,400
Expected growth rate for FCFFs after 2 years from now5.00%
Long-term debt reported in long-term liabilities (in $ millions)4,900
Number of share outstanding as of valuation date (in millions)116.0
Short-term debt (in $ millions)300
Total book value of assets ($ millions)3,600
Total book value of equity ($ millions)2,300
WACC for firm A12.00%
What is the price per share of Firm A stock based on the discounted cash flow (DCF) method of valuation?
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