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You are valuing a company that is projected to generate a free cash flow of $10 million next year, growing at a stable 2.5% rate
You are valuing a company that is projected to generate a free cash flow of $10 million next year, growing at a stable 2.5% rate in perpetuity thereafter. The company has $22 million of debt and $8.5 million of cash. Cost of capital is 13%. There are 5 million shares outstanding. How much is each share worth according to your valuation analysis?
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