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only need a, b,d, e(1-4) purchase of Biggerstaff & McDonald (B&M), a privately held company owned friends, each with 5 million shares of stock. B&M

only need a, b,d, e(1-4)
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purchase of Biggerstaff & McDonald (B&M), a privately held company owned friends, each with 5 million shares of stock. B&M currently has free cash flow $24 million, which is expected to grow at a constant rate of B&M's financial ments report short-term investments of 100 million, debt of $200 million, and pret Hock of 50 million. B&M's weighted average cost of capital (WACO IS IN A following questions Describe briefly the legal rights and privileges of common stockholders b. What is free cash flow (FCF)? What is the weighted average cost of capita the free cash flow valuation modell c. Use a pie chart to illustrate the sources that comprise a hypothetical company's value. Using another pie chart, show the claims on a company's value. Hoe is a residual claim? d. Suppose the free cash flow at Time I is expected to grow at a constatate forever. If 8;

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