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River Enterprises has 500 million in debt and 18 million shares of equity outstanding its excess cash reserves are $13 milion. They are expected to
River Enterprises has 500 million in debt and 18 million shares of equity outstanding its excess cash reserves are $13 milion. They are expected to generate 5190 million in tre cash flow next you with a growth rate of per year in perpetuity. River Enterprises cost of equity capital is 11%. After analyzing the company, you believe that the growth rate should be instead of 2% How much higher in dolor) would the price per share bed you are right? If the growth rate is 2%, the price per she is Round to the nearest cert) If the growth rate is 3%, the price per shave is $ Round to the nearest cent) If you are right and the growth rate is 3%, the price per share would be higher (Round to the nearest cent)
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