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Hallicut inc. project that over the next three years, it will generate cash flows of $22 thousand in year one, $29 thousand in year two,
Hallicut inc. project that over the next three years, it will generate cash flows of $22 thousand in year one, $29 thousand in year two, and $37 thousand in year three. The terminal (horizon) value of free cash flows in year three is expected to be $138 thousand. The corporation has 24 thousand shares of common stock outstanding and a weighted average cost of capital of 8.96%. If Hallicut must pay $88 thousand to its debtholders, based on the FCFF method, what is the intrinsic value of a share of common stock?
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