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Suppose Free Cash Flow to the Firm (FCFF) for Korsakov Corporation is R1 million for 1-4 years, then it is expected to grow at a
Suppose Free Cash Flow to the Firm (FCFF) for Korsakov Corporation is R1 million for 1-4 years, then it is expected to grow at a rate of 3%. Assume WACC is 15%. If 300 000 shares are outstanding, what is the predicted price of this stock if the firm has R4 000 000 of debt?
(10 marks)
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