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FINA Corporation was acquired for a purchase price of $14.89 per share. FINA had 18.7 million shares outstanding, $46.7 million in cash and no debt
FINA Corporation was acquired for a purchase price of
$14.89
per share. FINA had
18.7
million shares outstanding,
$46.7
million in cash and no debt at the time of the acquisition.
Given a weighted average cost of capital of
11.4%,
and assuming no future growth, what level of annual free cash flow would justify this acquisition price?
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