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Baxters free cash flow is 20 million annually and is

Camper,Inc. is interested in acquiring Baxter Corp. Baxter has 30 million shares outstanding. Its WACC is 11% and the risk free rate is 4%. Baxter has $5million in debt. Baxter's free cash flow is $20 million annually and is expected to grow at a constant rate of 5% per year. Calculate the intrinsic value of Baxter's stock, using the formula Vop = FCF0(1+g)/WACC - g.

$295 million
$328 million
$345 million
$350 million
None of the above

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Finance Basics: Baxters free cash flow is 20 million annually and is

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