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the Predatory Phone Company has current free cash flow to the firm of $450 million. Predatorys interest expense is $75 million. FCFE grows at a
the Predatory Phone Company has current free cash flow to the firm of $450 million. Predatorys interest expense is $75 million. FCFE grows at a constant 4%, the WACC is 6%, and the cost of equity is 10%. There is 100 million shares outstanding. If the tax rate is 35% and the net debt of Predatory increased by $50 million, what is the intrinsic value per share flow to Predatorys equity holders?
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