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A firm has 120,000 shares of stock outstanding, a sustainable rate of growth of 3.8, and $648,200 in free cash flows. What value would you place on a share of this firm's stock if you require a 10% rate
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A firm has 120,000 shares of stock outstanding, a sustainable rate of growth of 3.8, and $648,200 in free cash flows. What value would you place on a share of this firm's stock if you require a 10% rate of return? e was $45?

User AkaHuman
by
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1 Answer

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Hello! The answer to your question is as followed:

The value that you would you price on a share of this firm's stock is $52.96

User Charles Khunt
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