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Creative Enterprise has $500 million in debt and 20 million shares of equity outstanding. Its excess cash reserves are $15 million. They are expected to
Creative Enterprise has $500 million in debt and 20 million shares of equity outstanding. Its excess cash reserves are $15 million. They are expected to generate $200 million in free cash flows next year with a growth rate of 2% per year in perpetuity. Creative Enterprises cost of equity capital is 12%. How much would the price per share of stock be?
(Round up your answer to the nearest two decimal points)
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