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XYZ has an expected free cash flow of 118M next year and will remain the same in perpetuity. It has a WACC of 11%. The

XYZ has an expected free cash flow of 118M next year and will remain the same in perpetuity. It has a WACC of 11%. The company has short term investment amounting to $91M. The company has preferred stock of $50M, debt of $97M and $102M of common stock outstanding. What is the intrinsic value of its common stock?

Can someone explain how to get the intrinsic value of the common stock?

I took the 118+50-97/102 and got 29 which was incorrect answer. The correct answer was 9.97. I am not sure what I did wrong?

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