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please help solve A company's weighted average cost of capital is 10.3% per year and the market value of its debt is $320.6 million. The
please help solve
A company's weighted average cost of capital is 10.3% per year and the market value of its debt is $320.6 million. The company's free cash flow last year was $8.5 million and it is expected to grow 20% per year for the next three years. Thereafter, the free cash flow is expected to grow forever at a rate of 8.1% per year. If the company has seven million shares of common stock outstanding, what is the intrinsic value per share? A) $30.19 B) $28.97 C) $35.41 D) $37.80 E) $33.33 A stock's last dividend was $1.84 per share and the dividends are expected to grow 32% per year for three years. Thereafter, the dividends are expected to grow at a constant rate of 6.5% per year. If investors require a return of 13.4% per year to hold the stock, what is its intrinsic value per share? A) $48.78 B) $54.45 C) $53.26 D) $46.96 E) $52.31 Step by Step Solution
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