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You must estimate the intrinsic value of Noe Technologies stock. The end-of-year free cash flow (FCF 1 ) is expected to be $24.50 million, and
You must estimate the intrinsic value of Noe Technologies stock. The end-of-year free cash flow (FCF1) is expected to be $24.50 million, and it is expected to grow at a constant rate of 7.0% a year thereafter. The companys WACC is 10.0%, it has $125.0 million of long-term debt plus preferred stock outstanding, and there are 15.0 million shares of common stock outstanding. What is the firm's estimated intrinsic value per share of common stock?
a. | $46.11 | |
b. | $47.96 | |
c. | $38.27 | |
d. | $40.12 | |
e. | $34.58 |
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