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You have been assigned the task of using the free cash flow model to estimate ABC Corporation's (intrinsic) value. ABC's required rate of return is
You have been assigned the task of using the free cash flow model to estimate ABC Corporation's (intrinsic) value. ABC's required rate of return is 10.00%, its end-of-year free cash flow (FCF) is expected to be $150.0 million, the FCFs are expected to grow at a constant rate of 6.00% a year in the future, the company has $200 million of long-term debt plus preferred stock, and it has 50 million shares of common stock outstanding.What is ABC's estimated intrinsic value per share of common stock?
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