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Ted Corporation expects to generate free - cash flows of $ 2 0 0 , 0 0 0 per year for the next five years.
Ted Corporation expects to generate freecash flows of $ per year for the next five years. Beyond that time, free cash flows are expected to grow at a constant rate of percent per year forever. If the firm's weighted average cost of capital is percent, the market value of the firm's debt is $ and Ted has a half million shares of stock outstanding, what is the value of Ted stock?
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