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The common stock of Etar Company currently sells for $ 3 2 . 5 0 per share. In an attempt to determine whether Etar Company
The common stock of Etar Company currently sells for $ per share. In an attempt to determine whether Etar Company is fairly priced, you have assembled the following information:
The beforetax required rates of return on Etar debt, preferred stock and common stock are, respectively, and
The company's target capital structure is debt, preferred stock, and common stock.
The market value of the company's debt is $ million, and its preferred stock is valued at $ million.
Etar's FCFF for the year just ended is $ million. FCFF is expected to grow at a constant rate of for the foreseeable future.
The tax rate is
Etar has million outstanding common shares.
What is Etar's estimated common stock value per share?
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