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Suppose you are valuing a company that is growing its free cash flows at a stable 1.6% annual rate in perpetuity. It is projected to
Suppose you are valuing a company that is growing its free cash flows at a stable 1.6% annual rate in perpetuity. It is projected to generate free cash flows of $141 million next year and its cost of capital is 12.5%. Debt is $481 million, cash balance is $288 million, and shares outstanding is 212 million. What is your estimate for the value of each share?
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