Assume a corporation is expecting the following cash flows


Assume a corporation is expecting the following cash flows in the future: $-6 million in year 1, $9 million in year 2, $24 million in year 3. After year 3, the cash flows are expected to grow at a rate of 5% forever. The discount rate is 10%, the firm has debt totaling $50 million, and 8 million shares outstanding. What should be the price per share for this company?

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Risk Management: Assume a corporation is expecting the following cash flows
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