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Portage Bay Enterprises has $ 2 million in excess cash, no debt, and is expected to have free cash flow of $ 14 million next
Portage Bay Enterprises has $ 2 million in excess cash, no debt, and is expected to have free cash flow of
$ 14 million next year. Its FCF is then expected to grow at a rate of 3 %per year forever. If Portage Bay's equity cost of capital is
12 %and it has 44 million shares outstanding, what should be the price of Portage Bay stock?
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