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Today is December 31, 2003. The following information applies to Addison Airlines: After-tax, o million. perating income [EBITI -T)] for the year 2004 is expected

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Today is December 31, 2003. The following information applies to Addison Airlines: After-tax, o million. perating income [EBITI -T)] for the year 2004 is expected to be $420 The company's depreciation expense for the year 2004 is expected to be $80 million. The e company's capital expenditures for the year 2004 are expected to he $160 No change is expected in the company's net operating working capital. "The company's free cash flow is expected to grow at a constant rate of 5 percent per year The company's WACC is 10 percent. The current market value of the company's debt is S1.4 billion. The company currently has 125 million shares of stock outstanding. Based the stock price per share. upon the information provided, compute the market value of Addison's equity and

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