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RAD Co.s most recent free cash flow was $1,000,000. The firm is expected to grow free cash flow at a constant rate of 3% per
RAD Co.s most recent free cash flow was $1,000,000. The firm is expected to grow free cash flow at a constant rate of 3% per year forever. RAD Co. has $2,000,000 of debt, $800,000 of preferred stock, and 100,000 shares outstanding. The Weighted Average Cost of Capital is 7%. Compute firm value and todays stock price.
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