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Question 14 (15 points) You expect Europa Corporation to generate the following free cash flows over the next five years: Year 1 2 3 4

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Question 14 (15 points) You expect Europa Corporation to generate the following free cash flows over the next five years: Year 1 2 3 4 5 FCF ($ mil- lions) 25 28 32 37 40 Following year five, you estimate that Europa's free cash flows will grow at 5% per year and that Europa's appropriate discount rate (r) is 13%. If Europa Corporation has $200 million of debt and 8 million shares of stock in the market, then what is the share price for Europa stock

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