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We've got a company with bonds with a 3% coupon and 1,000 outstanding shares and 1,400 authorized. The company's shareholders are promised a 10% rate
We've got a company with bonds with a 3% coupon and 1,000 outstanding shares and 1,400 authorized. The company's shareholders are promised a 10% rate of return. We've got a saving account in the bank that has 4% interest. However, the free cash flow forecast for the next five years is this: $23,000 $24,000 $25,000 $26,000 and $27,000. Given all of this information, show your work and tell us what is one share of our stock worth?
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