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Question 8 0 out of 6 points & Year 4 Free Cash Flow $12 million $18 million L $22 million $26 million A Corporation is
Question 8 0 out of 6 points & Year 4 Free Cash Flow $12 million $18 million L $22 million $26 million A Corporation is expected to generate the above free cash flows over the next four years, after which they are expected to grow at a rate of 5% per year. If the weighted average cost of capital is 10% and it has preferred stock of $85 million, debt of $65 million, and 30 million shares outstanding, what is the expected current share price? Selected Answer: Answers: B. $12.61 A. $12.27 B. $12.61 C. $9.43 D. $9.78
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