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Question 16 Assume you have a company that has $200 million in cash and $400 million in market value of debt. The company is generating
Question 16 Assume you have a company that has $200 million in cash and $400 million in market value of debt. The company is generating free cash flow of $100 million per year starting next year and will grow at 5% per year for the foreseeable future. If the cost of equity is 15% and the weighted average cost of capital is 10%, what is the firm's equity value per share if they have 100 million shares outstanding? 10 points Save Answer A $22/share B. $20/share O c.$18/share O D, $12/share E, $8/share F. None of the above
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