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Lawrence Industries weighted average cost of capital is 10% in 2011 and 2012, and 12% from 2013 to infinity .It has $1,200,000 of debt at
Lawrence Industries weighted average cost of capital is 10% in 2011 and 2012, and 12% from 2013 to infinity .It has $1,200,000 of debt at market value and $100,000 of preferred stock. The estimated free cash flows over the next 3-year is given below. Beyond 2013 to infinity, the firm expects its free cash flow to grow by 8% annually. The number of shares outstanding is 200,000. Find Lawrence Industries common stock value per share.
Year(t) | Free cash flow |
2011 | -$100,000 |
2012 | $200,000 |
2013 | $250,000 |
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