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What's the stock price today? Question 5 - Free-cash-flow valuation An analyst has collected the following information about Franklin Electric: Projected EBIT for the next
What's the stock price today?
Question 5 - Free-cash-flow valuation An analyst has collected the following information about Franklin Electric: Projected EBIT for the next year $300 million. . Projected depreciation expense for the next year $50 million. .Projected capital expenditures for the next year $100 million. .Projected increase in operating working capital next year $60 million. Tax rate 40%. WACC 10%. Cost of equity 13%. Market value of debt and preferred stock today $500 million. Number of shares outstanding today 20 million. 13 d-1 s ' . . The company's free cash flow is expected to grow at a constant rate of 6% a year. Using the free cash flow valuation method, what should be the company's stock price todayStep by Step Solution
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