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In the above formula, if g is greater than rs, then what is the problem? Does the result make sense? Acme Corp. had FCF of

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In the above formula, if g is greater than rs, then what is the problem? Does the result make sense? Acme Corp. had FCF of $200 million last year. Acme's FCF is expected to grow by 5% per year indefinitely. The market value of the company's debt is $1200 million, and the MV of preferred stock is $300million. What is the intrinsic value per share if Acme has 24 million shares outstanding and its WACC is 10%? 4

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