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Keane Tech's free cash flow for the next year is expected to be $200 million. Free cash flow is expected to grow at a nominal
Keane Tech's free cash flow for the next year is expected to be $200 million. Free cash flow is expected to grow at a nominal rate of 5% for 3 years (t=2, t=3, t=4) and then the growth will stabilize at a nominal rate of 2% per year. The company's nominal cost of capital is 8%, its cost of equity is 11%. The company has $900 million of debt, and has 250 million outstanding shares of common stock. What is the value of the stock per share, if the cash flows occur throughout the year? Note: cash flows are in nominal terms. In your calculations, use 4 decimals. Group of answer choices $ 8 $ 20 $
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