Determine the stock value per share


Question:

Company x is expected to generate $150 million in free cash flow next year, and FCF is expected to grow at a constant rate of 5% per year indefinitely. Company x also has no debt or preferred stock, and its WACC is 10%. If company x has 50 million shares of stock outstanding, what is the stock's value per share?

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Finance Basics: Determine the stock value per share
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