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QUESTION 19 Lockean Co. has the following projected sales, costs, net investment, and free cash flow in millions. The anticipated growth rate in free cash
QUESTION 19 Lockean Co. has the following projected sales, costs, net investment, and free cash flow in millions. The anticipated growth rate in free cash flows after year 6 is 3% per year forever. There are 10 million shares outstanding and investors require a return of 7% on the company's stock. Using the constant growth model to find the terminal value, then calculate the price of the company's stock. (Round to 2 decimals) 4 6 ($ in millions) Sales Costs Taxes OCF Net Investment 1 220 143 28 49 20 2 242 157 31 54 22 3 266 172 34 60 24 292 190 38 64 26 5 321 209 41 71 29 353 229 45 79 29 FCF 29 32 36 38 42 50
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