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Suppose Glead corporations projected free cash flow for next year is FCF 1 = $150 million and FCF is expected to grow at a constant
Suppose Glead corporations projected free cash flow for next year is FCF1 = $150 million and FCF is expected to grow at a constant rate of 9%. If the companys weighted average cost of capital is 11%, the value of debt is currently $550 million and the outstanding number of common stocks is 80 million, and there is no preferred stocks issued. Compute the value of this stock.
- Note that you should round off at two decimal points. For example, 12.5555 =12.56.
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