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Dragon Industries has sales in the most recent year of $ 8 0 0 M , and EBIT of $ 3 0 0 M .

Dragon Industries has sales in the most recent year of $800M, and EBIT of $300M. The firm also had capital expenditures of $120M and depreciation expense of $90M. The required level of working capital is 10% of sales. The firm expects growth of 15% per year over the next two years, after which the growth rate will drop to 6% per year forever. The firm is financed with $1B in debt and $3B in equity, the bondholders require a 9% return, and the stockholders require a 13% return. The relevant tax rate is 30%. Outstanding shares (100 MM). Calculate intrinsic value of firm on a per share basis.

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