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Consider the following data for XMart Inc. Net income - 5000, Capital expenditure - 1200, depreciation - 360, last year WC - 1600, this year

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Consider the following data for XMart Inc. Net income - 5000, Capital expenditure - 1200, depreciation - 360, last year WC - 1600, this year WC - 1800, EBIT - 9000, - 34%. The firm retired $400 debt and issued $600 new debt. Change in other assets is $100. (a) Calculate the free cash flow to equity and to form for this year. (b) If growth in free cash flow to equity is expected to be 2% forver, firm has 500 shares outstanding, and Ke-8%, calculate the target stock price. Show all work

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