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SA Aeronautics just announced that it won a 5 year defence contract. The company expects its free cash flow to increase by 30 million of
SA Aeronautics just announced that it won a 5 year defence contract. The company expects its free cash flow to increase by 30 million of each of the next 5 years becouse of this contract. S.A aeronautics has 20 million shares outstanding , no debt and an equity cost of capital of 9%. if this news came a complete surprise to investors, what should happen to SA`s stock price upon the announcement?
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