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Firm F has 3 million shares outstanding, of which you own 0.5%. The executives decide to raise money by issuing an additional 500,000 shares. Based
- Firm F has 3 million shares outstanding, of which you own 0.5%. The executives decide to raise money by issuing an additional 500,000 shares. Based on the Preemptive Right, how many shares can you choose to purchase at the issue price?
- 3500 shares
- 3500 shares
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- 5000 shares
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- 3000 shares
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- 2500 shares
2. What is the intrinsic value of a single share of stock given the information below?
- Cash: 20
- CapEx: 90
- FCFF (today): 60
- Fixed Assets: 300
- Net Debt: 200
- WACC: 7%
- cost of debt: 4%
- # of shares: 15
- growth rate: 2%
- tax rate: 27%
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