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Figures in millions Year o Year 1 Year 2 $150 80 $160 85 Cash flow from operations Cash flow from investments Total value of debt

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Figures in millions Year o Year 1 Year 2 $150 80 $160 85 Cash flow from operations Cash flow from investments Total value of debt $200 Number of shares outstanding = 25 The firm has no preferred stock. The firm's required rate of return (or firm's weighted average cost of capital) is 12 percent. Assume that free cash flows grow at a constant rate of 6 percent a year forever after Year 2. What is the value of Firm X's stock per share in Year O using the constant growth model? A) $39.14 B) $47.14 C) $49.89 D) $57.89

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