Problemthe free cash flow to the firm is 300 million in, Ask an Expert

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Problem:

The free cash flow to the firm is $300 million in perpetuity, the cost of equity equals 18% and the WACC is 16%. If the market value of the debt is $1,000 million and there are 122 million shares outstanding,

Required:

Question: What is the value of a share of stock?

Note: Please provide reasons to support your answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171424

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