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Question 9 Homework Unanswered A company is projected to generate free cash flows of $50 million per year for the next two years, after
Question 9 Homework Unanswered A company is projected to generate free cash flows of $50 million per year for the next two years, after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is 10.5%. It has $25 million worth of debt and $6 million of cash. There are 15 million shares outstanding. If the appropriate terminal exit value for this company is 14, what's your estimate of the company's stock price? Round to one decimal place.
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
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