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Question 16 (8 points) Heath and Logan Inc. forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%,

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Question 16 (8 points) Heath and Logan Inc. forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%, and the FCFs are expected to continue growing at a 5% rate after Year 3. Year: Free cash flow: $15 $10 S40 a) What is the current value of operations, in millions? b) the balance sheet show $ 20 million of short-term investment that are unrelated to operating activities, $30 million of long-term debt, $40 million of preferred stock, and $100 million of common equity. This firm has 10 million shares of stock outstanding. What is the best estimate of the stock's price per share? Format BIU. Question 17 (8 points)

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