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You must estimate the intrinsic value of Gallovits Technologies stock. Gallovits s end of - year free cash flow ( FCF ) is expected to

You must estimate the intrinsic value of Gallovits Technologies stock. Gallovitss end of-year
free cash flow (FCF) is expected to be $50 million, and it is expected to grow at a constant rate of 5%
a year thereafter. The companys WACC is 9%. Gallovits has $250 million of long-term debt plus
preferred stock, and there are 50 million shares of common stock outstanding. What is Gallovits'
estimated intrinsic value per share of common stock?

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