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Orange Co.s free cash flows for the next 4 years as follows: $3 million, $6 million, $8 million, and $16 million. After the fourth year,
Orange Co.’s free cash flows for the next 4 years as follows: $3 million, $6 million, $8 million, and
$16 million. After the fourth year, free cash flow is projected to grow at a constant 3%. Orange Co.’s
WACC is 9%, the market value of its debt and preferred stock totals $75 million; and it has 7.5 million
shares of common stock outstanding.
• What is the company’s estimated price per share?
$16 million. After the fourth year, free cash flow is projected to grow at a constant 3%. Orange Co.’s
WACC is 9%, the market value of its debt and preferred stock totals $75 million; and it has 7.5 million
shares of common stock outstanding.
• What is the company’s estimated price per share?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
