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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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