RE: Anyone know FINANCE? well come in
ok how about this one?
A firm has 200 million shares of stock outstanding, and an analyst is trying to estimate each share’s intrinsic value. The firm is expected to generate $175 million in free cash flow next year, and it is expected to grow at a constant rate of 7% per year. Its corporate WACC is 8%, and the firm has $400 million of debt and preferred stock. What is the value of the company’s stock per share?
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