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Read the following information and answer question (15) to (16) and Bonus question. A Corporation is expected to generate the below free cash flows over
Read the following information and answer question (15) to (16) and Bonus question. A Corporation is expected to generate the below free cash flows over the next four years, after which they are expected to grow at a rate of 6% per year. If the weighted average cost of capital is 8% and it has debt of $ 80 million, and 30 million shares outstanding. Year 2 3 4 Free Cash Flow $10million $12 million $17 million $14 million What is the firm's expected value in year 4? $ 588.73 $ 700.00 $ 742.00 $ 557.85 QUESTION 16 What is the company's expected current stock price? $15.93 $ 16.96 $ 20.67 $ 22.07
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